COLUMBUS, Ohio—Payments provider Klarna, which has a large presence in the buy now, pay later space, has updated its app in a move it said is designed to “provide budget-conscious consumers with a tool to opt out of taking on more debt.”
The company is also calling on credit card companies and other providers to follow suit.
To activate the credit “opt out,” consumers enter the “settings” tab in the Klarna app and select, “deactivate credit,” Finextra explained.
Once credit has been deactivated, consumers are taken to a page of resources and support for those dealing with indebtedness and they will no longer be able to use Klarna Pay in 30, Pay in 3 or Financing products.
“The initiative has been welcomed by consumer groups which have been campaigning for stricter regulation of BNPL providers in the midst of a cost-of-living crisis,” Finextra said.