Klarna has introduced a new cashback program for its 12 million customers in the UK. Klarna, known for its buy now, pay later service, is offering customers the opportunity to earn up to 10% cashback on their purchases made through the Klarna app.
Participating retailers in the cashback initiative include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more to be added over time. Customers can utilize the cashback within the Klarna app, either by applying it to their Klarna balance, withdrawing it, or using it 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 those enrolled in the paid Klarna membership program, which offers cashback with no expiration.
David Sandström, the chief marketing officer at Klarna, stated, “Cashback is another avenue through which we deliver on our commitment to enhancing every purchase experience. It provides real value to consumers at their preferred retailers, particularly as the busiest shopping season approaches.”
Klarna offers interest-free repayment options on most of its 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 below £20. Additionally, missed payments could negatively impact one’s credit report as information may be shared with credit referencing agencies.
In response to concerns raised by the Financial Conduct Authority (FCA) regarding buy now, pay later products, new proposals are being considered to ensure affordability checks are conducted by providers and support is offered to customers facing financial difficulties. Starting July 2026, when buy now, pay later falls under FCA jurisdiction, borrowers will have the option to escalate complaints to the Financial Ombudsman Service if issues arise. Companies will have six months post-implementation to seek full authorization under the new rules.
