Klarna launches credit ‘opt out’ option, calls for industry to follow
CEO Sebastian Siemiatkowski has called on all credit providers to introduce similar opt out tools following a meeting with Economic Secretary.
Hoping to make it easier for Brits to manage their money, Swedish fintech giant Klarna is launching a voluntary credit ‘opt out’ option on its app.
The new feature will allow customers to ‘pre-decide’ not to use credit, making it easier to manage self-control when it comes to purchases because they will be blocked from using ‘buy now, pay later’ (BNPL) credit options.
Users will be able to deactivate credit options — such as Pay in 3, pay later or financing options — , but will have to reach out to the customer service team to reactivate credit options.
The decision to create the tool followed a meeting between Economic Secretary to the Treasury Andrew Griffith MP and Klarna co-founder and CEO Sebastian Siemiatkowski where Griffith suggested the feature.
“As a leader in responsible credit, we always put our customers’ interests first,” Siemiatkowski said.
“Unlike credit card companies, who push you to put all your purchases on credit, we believe that consumers should only use credit when it makes sense for them. That’s why I loved Andrew’s suggestion of a voluntary credit ‘opt out’, so people are in control of their finances.”
Siemiatkowski took to Twitter to share the news of the launch and to call on other providers, like HSBC and Amex, to implement similar features.
— Sebastian Siemiatkowski (@klarnaseb)
“As this government seeks to protect UK borrowers by bringing forward proportionate regulations for BNPL products, I welcome this initiative which shows how a responsible business can use innovation to help protect vulnerable customers,” Griffith said.