Monzo Bank is planning to launch a buy now/pay later service, entering the growing online market for short-term consumer loans, according to a person familiar with the matter.
The British digital bank will use credit and affordability assessments to decide credit limits, the person said.
The news was reported earlier by the Evening Standard newspaper, which said an announcement was expected as soon as next week.
Buy now/pay later services compete with credit cards and payday loans by offering consumers the ability to spread the cost of purchases over several months.
The British fintech Revolut is also looking to expand into the field, the Standard has reported, joining global firms including PayPal Holdings, Afterpay and Clearpay.
Klarna Bank, the shopping app backed by Snoop Dogg and built around short-term credit, attracted a valuation of $45.6 billion in a recent funding round, making it one of the world’s most valuable fintech startups.
The U.K. regulator
