UPDATE 10pm UK: Klarna has shared its full response to the Woolard Review, agreeing that "regulation has not kept pace with new products and changes in consumer behaviour" and that it "fully support[s] modernising regulation and supervision" in the buy-now, pay-later sector. Klarna clarified that Xbox All Access includes an affordability check.
ORIGINAL STORY 5pm UK: Klarna, the Swedish financial company that handles the credit payment process for Xbox All Access packages in the UK, is facing government regulation of its buy-now, pay-later services following a report by the Financial Conduct Authority.
The Woolard Review - which was commissioned by the FCA to investigate BNPL credit agreements such as those offered by Klarna, Clearpay and PayPal - found that while BNPL products promise split payments with no interest, it would be "relatively easy" for a consumer to amass £1000 of debt by using multiple BNPL lenders.