- The Financial Conduct Authority (FCA) authorizes Klarna to regulate payment and credit services in the UK.
- The authorization covers Klarna’s credit products (Term Loan, Klarna Card) and payment services, including card and open banking-based products.
- Klarna operated in the UK as Klarna Bank AB, but with the TPR licence expiring, it established Klarna Financial Services UK for consumer-facing services.
- Short-term interest-free credit products like BNPL, are beyond the Consumer Credit Act’s scope, but Klarna advocates for regulation to protect consumers.
- FCA approval secures Klarna’s UK business, aligning with upcoming FCA plans to regulate BNPL products.
- Klarna also reported establishing a UK holding company, potentially gearing up for a billion-dollar IPO.
