The UK Government has voted down a bill supported by 70 MPs to regulate buy now, pay later firms like Klarna, Laybuy and Clearpay.The amendment to the financial services bill was sponsored by Labour MP Stella Creasy, who referred to the entry of a host of BNPL firms as the “next Wonga waiting to happen”.
The BNPL industry has seen huge growth in recent years, with the likes of Klarna and Affirm becoming multi-billion dollar giants.
According to research by Credit Karma, a quarter of Brits used buy now, pay later services to fund Christmas shopping, setting up a £2.3 billion bill.
Looking for information about how COVID-19 has impacted the payments industry?
The Strawhecker Group (TSG) and Visa Consulting & Analytics (VCA) teamed up to survey a representative sample of U.S. consumers, and analyzed Visa’s proprietary spend data, with the goal of understanding how the COVID-19 pandemic has impacted consumer lifestyles, payments trends, and how behaviors may change after the pandemic.