Popular “buy now, pay later” shopping services like Klarna will face stricter regulation under proposals announced by the U.K. government Tuesday.
The Treasury said buy now, pay later (BNPL) firms would come under the supervision of the Financial Conduct Authority (FCA), which regulates financial services firms and markets in Britain.
Such firms will be required to conduct affordability checks before lending to customers, the government said, while people will also be allowed to escalate complaints to the U.K.’s financial ombudsman.
Source: CNBC
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