Global: Klarna Granted Approval for Credit and Payments Products in the UK

Klarna has received approval from the Financial Conduct Authority (FCA) to offer credit and payments products in the UK, securing this authorization before the expiration of a temporary deal established post-Brexit.

The FCA has authorized Klarna, a Swedish-based firm, to provide its term loans and card products within the UK. Notably, Klarna Bank, as a fully licensed Swedish bank, continued to deliver regulated services in the UK under the FCA’s Temporary Permissions Regime (TPR), set to conclude on December 31.

It’s essential to highlight that this authorization does not extend to Klarna’s primary buy now, pay later business, as it falls outside the scope of the Consumer Credit Act.

Klarna has consistently advocated for regulation, emphasizing the need to safeguard consumers while maintaining access to affordable credit. Abby Vickers, head of the newly created Klarna Financial Services UK, notes, “As well as enabling us to continue to provide our regulated products, the FCA approval puts Klarna’s successful UK business on a secure regulatory footing ahead of the expected regulation of BNPL.”