USE KLARNA OR CLEARPAY?

@werenotpooryet

105.1K followers · usually 2.8K views a post

Views

98.3K

Likes

722

Comments

98

Shares

159

SoundTikTok sound · original sound - werenotpooryet

Promoted product

Klarnaklarna.com

Klarna is a buy now, pay later service that allows customers to finance purchases, including a program for leasing Apple products like iPhones.

9 videos8 creators

Why it worked

The video addresses a timely and relevant financial topic (cost of living and consumer credit) with practical implications for everyday purchases, prompting viewer engagement through a direct question about their personal use and perception of buy-now-pay-later services.

Summary

The video discusses the recent regulation of 'buy now, pay later' services like Klarna and Clearpay in the UK, effective July 15th. It highlights that these services are now regulated, requiring affordability checks and offering consumers stronger protections, which the speaker suggests is a significant change from their previous unregulated status.

Structure

1Introduction to Klarna/Clearpay and recent rule changes
2Explanation of the July 15th regulation by the FCA
3

Original caption

Buy Now Pay Later has become so normal that sometimes we forget one important thing: It’s still borrowing. The rules have now changed, bringing affordability checks and stronger consumer protection And with back-to-school spending landing right now, the timing is interesting. 👇 Useful budgeting tool — or has BNPL become too normal? #Klarna #BuyNowPayLater #UKMoney #CostOfLiving #WeAreNotPoorYet

More from @werenotpooryet

Product placement

Klarna (a buy now, pay later service that allows users to split purchases into installments) ACTS; it is mentioned as a service that has changed its rules regarding affordability checks and consumer protection. Removing it would change the topic of the video. Clearpay (a buy now, pay later service that allows users to split purchases into installments) ACTS; it is mentioned alongside Klarna as a service that has changed its rules regarding affordability checks and consumer protection. Removing it would change the topic of the video.

Call to action

Do you see BNPL as a good budgeting tool for you or has borrowing become a little too normal? Let me know.

On-screen text

USE KLARNA OR CLEARPAY? RULES CHANGED 15 JULY

Transcript

If you're using Klarna or Clearpay to spread the costs on something that you've been purchasing. Have you seen what's changed? Let's have a look. Since the 15th of July, buy now pay later has been regulated by the Financial Conduct Authority. And it's actually quite a big change because buy now pay later has become so normal for people. So let's say something's cost in 120 pounds, you don't want to pay for that. Then the website will say, ah, three payments of 40 pounds. And suddenly that just feels a lot more manageable. But it is still borrowing. So under the new rules, providers have to carry out affordability checks before extending any type of credit now. Consumers also have stronger protections, including access to the Financial Ombudsman. Whereas we didn't have that before on Klarna or Clearpay. And I don't think for a second this needs to be called Klarna is bad, Clearpay is bad, because people aren't necessarily using this stuff to buy designer handbags. But this time of year, it could be, you know, school shoes, for example, any uniform that you might need, clothes, something for the house, something that really needs replacing. But I do think we've reached a point where splitting normal purchases into three or four monthly payments feels completely normal. And maybe that's the bigger conversation we need to have. If all purchases increasingly need credit to make them affordable, what does that tell us about household finances? So I'm curious. Do you see BNPL as a good budgeting tool for you or has borrowing become a little bit too normal? Let me know.