From CNBC: 2024-07-25 02:55:24

The U.K. plans to regulate buy now, pay later firms like Klarna and Clearpay. The government aims to protect consumers, with plans to be set out shortly after multiple delays. BNPL loans are unregulated globally, but the U.S. requires similar protections as credit cards for BNPL customers.

Executives from Klarna and Block push back on proposed regulations, fearing consumers will turn to more expensive credit options. Clearpay welcomes upcoming regulations, stressing the need for consumer protection and innovation in the sector. Klarna, PayPal, and Zilch did not immediately respond to requests for comment on the matter.

Read more: Britain plans new regulations after setbacks