Becoming the equivalent of a financial McDonald’s also comes with stricter rules. An impending UK crackdown on the ‘buy now, pay later’ industry is expected to bring about change, and Klarna is clearly keen to move forward.
Woolard recommended earlier this year that the rapidly growing sector be regulated for the first time, and the Treasury agreed to introduce legislation.
However, charities and debt activists are frustrated that the Treasury has still not released details of the new rules despite promises of “quick action” earlier this year.
Siemiatkowski says he is strongly in favor of the regulation, although he hopes the new rules will “not favor traditional credit card models by default” and will still be competitive.
He fears that in Britain there has been “a misunderstanding of what we are here for and what our purpose is”, which he is trying to fix. In recent months he has been spotted rubbing shoulders with politicians, bankers and business leaders in London in an effort to improve the company’s image.
Klarna’s huge success here took him by surprise, he admits, and the plan now is to bring in new features so that it is no longer seen as a âbuy now, pay laterâ business in a big way. -Brittany. He accepts that a certain degree of criticism remains.
âAt the end of the day, we’re still a credit provider, so it’s easy to sue us, but credit has a purpose and it makes sense on specific occasions,â he says.
“We want to try to provide a better form of credit to consumers, so we’re going to be continually challenged by people asking us’ is this really good, is this really better”, but we think our products are better. than credit cards.
âIf you look at our marketing in other markets, like Germany or Sweden, where ‘pay now’ is half of our volume [but not yet available in the UK], people see us as a competitor to PayPal because our marketing is not about credit per se.