Influencer: Why I stopped working with Klarna
Thea de Gallier, Harvey Day and Hannah Price
10 February 2021
As it s been announced that buy now, pay later services are to be better regulated by the Financial Conduct Authority, financial and marketing experts are raising concerns about the way they are advertised to young consumers. One influencer explains why she decided to turn her back on working with one of those companies.
Oghosa Ovienrioba, known to her followers as @SincerelyOghosa, was thrilled when she got an email to work with Klarna - the colourful, social media-friendly credit provider that lets you delay online shopping payment for 30 days, or split it into three chunks.
Buy now, pay later firms including Klarna will face tighter regulation from the City watchdog to stop millions of young shoppers plunging into huge debts after spending soared to £2.7billion during the pandemic.
The Financial Conduct Authority (FCA) today said bringing the burgeoning sector under control was a matter of urgency after a review of the unsecured credit market found one in 10 people using them already had debt arrears elsewhere.
The schemes, provided by firms like Klarna and Clearpay, let customers pay for their shopping in monthly instalments interest-free in order to spread the cost.
Their popularity exploded in 2020, with spending tripling to £2.7billion during the coronavirus lockdowns as Instagram influencers promoted the services. An estimated £4 in every £100 spent in the UK uses buy now, pay later.