Klarna has secured approval to offer credit and payments products in the UK ahead of the expiration of a temporary deal arranged in the wake of Brexit.
In brief:
-The Financial Conduct Authority has authorised the Swedish-based firm to provide the term loans and card products it offers in the UK.
-The authorisation does not cover Klarna's main buy now, pay later business, which is outside of the Consumer Credit Act's scope.
-Following Brexit, Klarna Bank, a fully licensed Swedish bank, continued to provide regulated services in the UK under the FCA’s Temporary Permissions Regime.
What does this mean?
"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,” says Abby Vickers, head of the newly created Klarna Financial Services UK.
