Klarna has introduced a new cashback program for its 12 million customers in the UK. Klarna is known for its buy now, pay later service, allowing users to make purchases on credit and pay over time. The newly launched cashback feature enables customers to earn up to 10% back 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 soon. Cashback rewards can be utilized within the Klarna app to pay off balances, withdraw cash, or apply towards future purchases where Klarna is accepted.
There is no cap on the amount of cashback that can be earned; however, if an account remains inactive for 90 days, the cashback may expire, except for members of the paid Klarna scheme who enjoy no cashback expiration.
David Sandström, Klarna’s chief marketing officer, stated, “Cashback is another avenue through which we uphold our commitment to enhance every shopping experience. It provides tangible value to consumers at their favorite retailers, especially as the busiest shopping season approaches.”
Klarna offers interest-free payment options like “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 timely payments could negatively impact your credit report if information is shared with credit agencies.
Conversely, timely repayments and responsible use of buy now, pay later services can demonstrate your creditworthiness and ability to manage borrowing. The Financial Conduct Authority (FCA) has initiated a consultation on buy now, pay later products to address concerns about potential customer debt. Proposed regulations aim to ensure affordability checks, financial support for those in need, and access to the Financial Ombudsman Service for complaints.
The FCA’s new oversight of buy now, pay later is set to commence in July 2026, with firms having six months to seek full authorization after the regime takes effect.