Klarna will be sharing its customer data with credit reference agencies from 1st June. This could prevent some consumers from accessing certain loans including mortgages where regular available income, other sources of credit being serviced, and repayment histories are measures of borrowing eligibility.
Klarna BNPL arrangements are offered by an increasing number of retailers and have proved attractive to younger customers. 30 per cent of the overall 17 million past and current BNPL users are in their 20s, using BNPL largely to fund impulse purchases.
Other BNPL credit services are likely to follow Klarna as tighter regulations on this segment of the finance market are expected.