Buy now, pay later firms like Klarna and Block's Afterpay could be about to face tougher rules in the U.K.Britain's new Labour government will soon set out updated plans to regulate the "buy now, pay later" industry, a government spokesperson told CNBC.
"Regulating Buy Now Pay Later products is crucial to protect people and deliver certainty for the sector," the Treasury spokesperson told CNBC via email Thursday.
The government first set out plans to regulate the sector in 2021.
BNPL plans are flexible credit arrangements that enable a consumer to purchase an item and then pay off their debt at a later date.
Most plans charge customers a third of the purchase value up front, then take the remaining payments the following two months.
Persons:
Block's, Tulip Siddiq, Siddiq, Keir Starmer's, Christopher Woolard, BNPL, —
Organizations:
Labour, CNBC, Treasury, . Treasury, Keir Starmer's Labour Party, Financial
Locations:
Britain