This is another move by Klarna to encourage customers to control their debt.

Klarna, a global payments network and shopping destination, has partnered with the Money Adviser Network to offer free and impartial debt advice to its consumers. Klarna, as the pioneering Buy Now Pay Later (BNPL) provider to collaborate with the Money Adviser Network, will guide its customers to debt advice services offered by the network’s members, ensuring round-the-clock support for individuals seeking credit advice.

The Money Adviser Network, provided by MoneyHelper (a UK Government body), connects consumers to debt advice services such as StepChange, Citizens Advice, or the National Debtline, ensuring quick access to help. (Klarna)

This move by Klarna is part of its efforts to promote responsible borrowing and aligns with upcoming Consumer Duty standards set by the FCA. The company has introduced various initiatives, including a credit ‘opt-out’ tool and clearer terms and conditions.

Additionally, Klarna is trialing Open Banking data and limiting credit access to prevent debt accumulation and maintain lower default rates compared to credit card providers.

Klarna urges other BNPL providers to offer similar access to advice and support to prioritize customers’ interests.

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