Klarna launches #WhyPayInterest campaign, highlighting Britain’s broken credit model

Klarna, the leading global banking, payments and shopping service, has today launched a major new nationwide campaign titled #WhyPayInterest. The campaign, which runs across OOH, online, on social media and in print, highlights the difference between buy now pay later products and traditional credit cards in the UK.

In 2020 alone Brits paid £5.7 billion in credit card interest and fees to outdated and archaic credit providers. Those that used zero-cost buy now pay later options instead, such as Klarna’s ‘Pay later’ products, saved £76 million in interest payments during 2020 – the equivalent of £144 every 60 seconds. #WhyPayInterest shines the spotlight on traditional finance providers, challenging out-dated business models and products that don’t serve consumers’ best interests.

The campaign is activated nationwide by Klarna, and includes major advertising spots such as Piccadilly Lights, as well as 400 taxis, and full page slots in national newspapers such as The Guardian, The Sun, The Times, The Daily Mail and The Financial Times.

#WhyPayInterest launches following a year of significant growth in the UK for Klarna, with over 14 million customers and 13,000 retail partners. The fintech has also recently announced plans to double its UK headcount to 400 over the next year after moving into new offices.

Sebastian Siemiatkowski, CEO of Klarna said:

“Traditional banks and card companies have been overcharging customers for far too long. Last year they  made £5.7 billion in credit card interest alone. That’s why we launched #WhyPayInterest, to highlight the massive amounts of interest and fees charged by traditional credit providers. At Klarna we offer a smarter way to shop, bank and pay, which is free and fair for consumers.

“Buy now pay later saved UK consumers £76 million in credit card fees in 2020, and those savings will grow in 2021 as more and more consumers say ‘no thanks, old banks!’”