Klarna has introduced a new cashback program for its 12 million customers in the UK. Klarna, a popular buy now, pay later service, is rolling out a cashback feature that allows users to earn up to 10% back on their purchases when shopping via the Klarna app.
Participating retailers in this cashback initiative include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more to be added soon. Customers can access their cashback rewards within the Klarna app, where they have the option to apply it to their Klarna balance, withdraw it, or use it towards future purchases where Klarna is accepted.
There is no limit on the amount of cashback that can be earned, but if an account remains inactive for 90 days, the cashback may expire. However, customers enrolled in the paid Klarna membership scheme do not face this expiration rule.
David Sandström, Klarna’s chief marketing officer, emphasized the significance of the cashback feature, stating, “Cashback is another way we’re delivering on our promise to make every purchase smarter. It gives consumers real value back at their favourite retailers, just as the busiest shopping season of the year kicks off.”
Klarna provides interest-free repayment options on most payment plans, such as “Pay in 30 days” and “Pay in 3.” Late payments may incur a £5 fee for orders over £30 or 25% of the purchase price for orders under £20. In cases of missed payments, customer information may be shared with credit referencing agencies, potentially affecting their credit report.
The Financial Conduct Authority (FCA) has initiated a consultation on buy now, pay later services due to concerns about customers accumulating unmanageable debt. The proposed regulations would require providers to assess borrowers’ repayment abilities and offer assistance in cases of financial difficulty. Customers will also have recourse to the Financial Ombudsman Service in case of issues, with the rules set to be enforced under the FCA’s jurisdiction by July 2026.
Firms operating buy now, pay later services will have a six-month window from the implementation date of the new regulations to apply for full authorization.