Klarna has introduced a new cashback initiative for its 12 million UK clientele. The service, known for its “buy now, pay later” option, enables customers to make purchases on credit and spread out payments over time. Through the Klarna app, customers can now earn up to 10% cashback on their online purchases.
Participating retailers in this cashback program include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more to be added soon. Cashback rewards can be utilized within the Klarna app, applied to outstanding balances, withdrawn, or saved for future Klarna transactions.
There is no cap on the amount of cashback that can be earned; however, inactive accounts for 90 days risk losing accumulated cashback, except for members enrolled in the paid Klarna membership where cashback does not expire.
David Sandström, Klarna’s chief marketing officer, commented, “Cashback is another way we’re fulfilling our commitment to enhancing every purchase experience. It provides real value to consumers when shopping at their preferred retailers, especially as the peak shopping season approaches.”
Klarna offers interest-free repayment options like “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. Moreover, missed payments could affect your credit report if shared with credit agencies.
The Financial Conduct Authority (FCA) has initiated a review of buy now, pay later services due to concerns about customers taking on unaffordable debt. Proposed changes include affordability checks, support for financial distress, and the option to lodge complaints with the Financial Ombudsman Service. Regulations are expected to be enforced under the FCA’s jurisdiction by July 2026, giving firms six months to seek full authorization.