UK digital challenger Monzo is the latest to jump aboard the increasingly crowded buy now, pay later train.
The BNPL market is booming in the UK and around the world. This week, PayPal agreed to pay $2.7 billion for Japan’s Paidy, while Square is forking out $29 billion for Australia’s Afterpay. Sweden’s Klarna is the world’s second most valuable privately-held fintech with a $45.6 billion valuation.
But an FCA report published earlier this year warned that there was “a significant potential [for] consumer harm”, flagging concerns about affordability checks and the possibility of hidden debt.
Monzo plans to allay some of these fears by carrying out affordability checks for customers, says the Standard, citing a source. The firm will also share data with credit agencies.