He said: “It is alarming that UK consumers are still being forced to take out high-cost credit cards to demonstrate they can use credit responsibly and build their credit profile.
“That will start to change on June 1 this year as the vast majority of the 16 million UK consumers who make Klarna BNPL payments in full and on time will be able to demonstrate their responsible use of credit to other lenders.”
The existence of BNPL services is controversial, and concerns have been raised over the rapid rise of services like Klarna in recent years.
Klarna has some 16 million users in the UK, and is the largest service of its type in Britain.
Currently, some of these services are not regulated by the Financial Conduct Authority, but the Government is planning to change this.
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