Former Klarna CEO Warns BNPL Rules Could Exclude 3 Million Creditworthy Consumers
Updated
Updated · Financial Times · Jul 21
Former Klarna CEO Warns BNPL Rules Could Exclude 3 Million Creditworthy Consumers
1 articles · Updated · Financial Times · Jul 21
Summary
Up to 3 million consumers could be shut out by new UK buy now, pay later rules despite being creditworthy, former Klarna UK chief Alex Marsh said in a letter.
More than half of those likely to be rejected have never missed a BNPL repayment, he argued, suggesting thin credit files are screening out borrowers whose current finances are sound.
Marsh, now CEO of Salad Group, said he still supports regulation but warned the reforms will fail if they push people toward higher-cost, unregulated credit.
Open Banking offers a better test of affordability by using real-time income and spending data, he said, making fair access to regulated credit the key measure of success.