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Fears over young shoppers' debts mean buy now, pay later firms such as Klarna will face more scrutiny by regulators.
These services, offered through major retailers, allow people to split payments without paying interest and are used by millions of shoppers. But the Financial Conduct Authority (FCA) said it would be easy to build-up unseen debts of £1,000. Now it will regulate the sector, after the value of these services saw a near fourfold rise last year. Buy now, pay later services were used by five million people in the UK for total sales of £2.7bn in the last year. However, one in 10 people using them already had debt arrears elsewhere, a wide-ranging FCA review into credit services found.
Source: BBC Business
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