Klarna has introduced a new cashback program for its 12 million customers in the UK. Klarna, a popular buy now, pay later service, now offers customers the opportunity to earn up to 10% cashback on their online purchases made through the Klarna app.
Participating retailers in the cashback program include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more to be added in the future. Users can access their cashback rewards within the Klarna app, which can be used to pay off their Klarna balance, withdrawn as cash, or applied towards future purchases where Klarna is accepted.
There is no limit to the amount of cashback customers can earn, but if an account remains inactive for 90 days, the cashback may expire, except for members enrolled in the paid Klarna membership scheme, who enjoy cashback benefits with no expiry date.
According to David Sandström, Klarna’s chief marketing officer, the introduction of cashback is part of their commitment to enhancing the shopping experience for consumers, providing them with tangible benefits as they gear up for the busiest shopping season.
Klarna’s payment options such as “Pay in 30 days” and “Pay in 3” offer interest-free repayments, but late payments may incur a fee of £5 for orders over £30 or 25% of the purchase price for orders under £20. Failure to make timely payments may also impact credit reports if shared with credit referencing agencies.
In response to concerns raised by the Financial Conduct Authority (FCA) regarding the potential debt risks associated with buy now, pay later services, new regulations are being proposed that would require providers to assess customers’ repayment ability and provide support for those facing financial difficulties. Customers will have the right to escalate complaints to the Financial Ombudsman Service, with the new rules expected to be enforced under FCA oversight by July 2026.
Firms operating buy now, pay later services will have a six-month window from the implementation date to seek full authorization to comply with the upcoming regulatory framework.