A physical card in the U.K. will be used to pay for the service from Swedish firm Klarna.
On Wednesday, the company announced the launch of the Klarna Card, a Visa card that lets users delay payments on their purchases, both in-store and online.
The card is used by over one million people in Germany and Sweden. This is the first time it has arrived outside of the EU. In the U.K. and America, the company has been expanding.
Pay in 30 days is a feature of the Klarna Card. In the future, the company plans to include additional payment options.
Like other buy now, pay later firms, Klarna offers a popular product that splits the cost of users' purchases over a period of monthly installments. The firm makes money by charging retailers a small fee for using its payment method.
Push notifications will be sent to a customer's phone when they make a transaction with its card. Users will be able to extend the due date by up to 10 days for free.
The card will be rolled out gradually with a view to opening eligibility to all customers by early 2022. Users can sign up on the waitlist.
Buy now pay later has become a sustainable alternative with no interest and clear payment schedules for online purchases where credit makes sense.
The launch of Klarna Card in the U.K. gives consumers control and transparency over their purchases in the store.
The credit card industry has been criticized by Klarna for loading consumers up with debt. The launch of its own physical card may come as a surprise for some, but the firm argues that it is a better alternative to credit cards since it does not charge interest or late payment fees.
The buy now, pay later industry faces scrutiny from regulators. The Financial Conduct Authority in the U.K. is preparing new rules that will bring the sector under their oversight.
The U.S. Consumer Financial Protection Bureau is investigating popular programs like Afterpay and Affirm.
The firm received the green light from regulators before launching, according to Daniel Greaves.
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