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 customers the opportunity to earn up to 10% cashback on purchases made through the Klarna app. Participating retailers in this scheme include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more to be added.
The cashback is credited within the Klarna app and can be utilized towards paying off a Klarna balance, withdrawn, or saved for future purchases wherever Klarna is accepted. Customers can earn unlimited cashback, but inactive accounts for 90 days may see the cashback expire, except for members of the paid Klarna membership program, which has no cashback expiration policy.
David Sandström, Klarna’s chief marketing officer, stated, “Cashback is another way we’re delivering on our promise to make every purchase smarter. It gives consumers real value back at their favorite retailers, just as the busiest shopping season of the year kicks off.”
Klarna provides interest-free repayment options for most payment plans, such as “Pay in 30 days” and “Pay in 3”. Late payments may incur a fee of £5 for orders over £30 or 25% of the purchase price for orders under £20. Additionally, failing to make payments on time may impact credit reports if shared with credit referencing agencies.
Following concerns raised by the Financial Conduct Authority (FCA) regarding buy now, pay later products, new regulations are being proposed. Under these proposals, buy now, pay later providers will need to assess borrowers’ repayment abilities and offer assistance in case of financial difficulties. Borrowers will have the right to escalate complaints to the Financial Ombudsman Service. The FCA is set to oversee buy now, pay later products starting in July 2026, with firms having six months to seek full authorization once the rules come into effect.
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