Klarna, a firm that’s best known for its point-of-sale financing toolset, reports that it more than doubled its total number of U.S. users to 15 million compared to just one year ago.

Why should we care?
‘Buy now, pay later’ was initially touted as a way to pay for young customers wary of taking on credit card debt. Startups and banks have turned their attention to it to take advantage of a payment method that’s become increasingly common during the socially-distanced pandemic era. One estimate suggests such services grew 200% during the pandemic – a boon for Klarna and its competitors like Afterpay, Affirm, and similar solutions offered by banks. Unlike most credit cards, the onboarding process is almost instant and many merchants offer 0% financing options. Klarna says it’s growing its client base quickly by pursuing a dual approach that’s both B2B as well as B2C. It also plans to move more broadly into payments beyond point-of-sale lending. The ‘buy now, pay later’ space, however, is increasingly catching the eyes of regulators who want to ensure these tools aren’t predatory. In the U.K. this week, for example, the Financial Conduct Authority announced plans to bring point-of-sale lenders under stricter regulation, forcing firms to conduct robust affordability checks on customers and offer fair terms for customers who are struggling to repay.