Klarna to start reporting to UK credit agencies

Klarna, which provides a “buy now, pay later” service, will begin reporting its customer data to authorities in the U.K. on June 1.

The move comes amid concerns about the increasing use of credit services. According to a recent study by checkout.com, BNPL services are used by 23% of consumers in Europe. And by 2030, the market will grow to $4 trillion.

Because of the high risks to citizens, British MPs have called for stricter regulation of the BNPL space to reduce the likelihood of harm to consumers.