Klarna launches buy-now-pay-later virtual cards

Klarna’s new app means that all online retailers, many of whom would likely have never teamed up with the fintech, are powerless to stop their customers from using the BNPL service. With concerns over the viability of the unsecured credit market and calls for tighter restrictions, Klarna will also introduce monthly budget features and a personal spending limit to help consumers control their spending. 

Estimates show that roughly 72 percent of ecommerce will take place on a mobile device by the end of 2021. Klarna’s latest feature is already live in other markets, including the US, Australia, and Sweden, where the app is used by 6.5 million people on average each month and the pay later feature has been used over 12.8 million times through the app.