Klarna has introduced a new cashback program for its 12 million customers in the UK. Klarna, known for its buy now, pay later service, now offers a cashback feature allowing users to earn up to 10% back on their online purchases made through the Klarna app.
Major retailers participating in this cashback initiative include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more partners to be added soon. The cashback rewards are accessible through the Klarna app and can be used to reduce your Klarna balance, withdraw as cash, or apply towards future Klarna purchases.
Customers have the opportunity to earn unlimited cashback, but inactive accounts for 90 days may result in the expiration of accrued cashback, except for members of the paid Klarna membership program, which offers no cashback expiration policy.
David Sandström, Klarna’s chief marketing officer, stated, “Cashback is another way we’re fulfilling our commitment to enhancing every purchase experience. It provides real value to consumers at their favorite retailers, especially as the busiest shopping season approaches.”
Additionally, Klarna offers interest-free repayment options for 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. Failure to make payments on time may lead to negative credit reporting to credit reference agencies, affecting creditworthiness.
The Financial Conduct Authority (FCA) has launched a consultation on buy now, pay later products to address concerns about customers taking on unmanageable debt. New proposals aim to ensure affordability checks, financial assistance for those in need, and the ability for borrowers to lodge complaints with the Financial Ombudsman Service when necessary. The FCA will oversee buy now, pay later products starting July 2026, with a six-month transition period for firms to seek full authorization.