Payment service Klarna is proceeding with its plan to introduce ‘buy now, pay later’ services in physical stores. The Swedish company is the largest provider of this deferred payment option.
Today, Klarna met with the Dutch House of Representatives alongside three other providers after the government stated last month that it cannot prohibit ‘buy now, pay later’ services in retail environments. However, Minister Heinen (Finance) and State Secretary Struycken (Legal Protection) urged the parties involved not to proceed with these plans.
Klarna claims there is significant demand for this service from both retailers and customers. The other three providers (Riverty, Billink, and In3) expressed either disapproval or a lack of plans for implementing deferred payment in physical stores.
Klarna’s CEO, Wouter Strauven, argues that credit has existed for much longer and that their service is a preferable alternative to overdrafts with interest. There are ongoing concerns from the Dutch House of Representatives and the government about the potential for consumers to incur debt through ‘buy now, pay later’ services.
Klarna’s move places competitor In3 in a dilemma, as they may also offer the service in stores to remain competitive. The companies were questioned by lawmakers about the ease with which vulnerable customers could incur debt and how they prevent minors from using the app.
They suggested a database to track customers’ credit history and emphasized they do not profit from late payments. All four companies have implemented measures to better verify users’ ages.
Stricter European regulations for deferred payment providers will take effect in November 2026.
Source: NOS