Klarna launches on Google Pay in the UK
Buy-now-pay-later service Klarna has officially launched on Google Pay in the UK.
Klarna on Google Pay will offer UK consumers the flexibility of Klarna pay in three interest-free instalment payment method, the group said in an accompanying statement.
Users will be able to manage their purchases seamlessly in the Klarna app, tracking deliveries, handling returns, and managing repayments, all in one place.
“We’re really excited to bring Klarna’s fair, flexible and interest-free payment options to Google Pay users. This is a big moment for us and a major step towards our goal of being available at every checkout, everywhere,” said Raji Behal, Head of Western and Southern Europe, UK & Ireland at Klarna
“Together with Google, we’re making it easier than ever for millions of shoppers to choose Klarna and pay in a smarter, more transparent way – all from their phone.”
Lisa Yokoyama, Director of Product Management at Google Pay, said the partnership is another way of giving options to customers.
“Expanding our collaboration with Klarna to the U.K. underscores our goal to empower more people with the flexibility to pay how they choose. With people shopping on Google over a billion times a day, this broader footprint provides even more checkout options to help businesses drive tangible growth,” she said.
Changes coming in July
The announcement comes as millions of UK shoppers who rely on Buy Now, Pay Later (BNPL) services to spread the cost of purchases are set to gain significant new protections from mid-2026, the Financial Conduct Authority (FCA) has announced.
In a statement on Wednesday (11 February), the regulator revealed that BNPL, the popular interest-free instalment option used at checkouts for everything from fashion to furniture, will come under full FCA regulation starting 15 July 2026.
This follows the government’s decision to bring previously unregulated “deferred payment credit” into the regulatory fold, ending years of light-touch oversight for a sector that has exploded in popularity.
Around 11 million UK adults, roughly 20% of consumers, according to the FCA’s 2024 Financial Lives Survey, used BNPL in the 12 months to May 2024. The market has ballooned from just £60 million in 2017 to more than £13 billion in 2024, driven by providers like Klarna, Clearpay, Laybuy and others.
Until now, BNPL has operated with minimal consumer safeguards compared to traditional credit cards or loans. Borrowers have had limited recourse if things went wrong, and there were no mandatory affordability checks for repeated or larger uses. The new rules aim to change that while allowing the sector to continue thriving.
