Klarna has revealed a fresh cashback program for its 12 million customers in the UK. Klarna, known for its buy now, pay later service, is introducing a new cashback initiative where customers can earn up to 10% back on their online purchases made through the Klarna app.
The cashback scheme includes popular retailers such as Boots, Expedia, Dyson, Samsung, and Hotels.com, with more partners to be added soon. Cashback rewards can be utilized within the Klarna app, either applied to the Klarna balance, withdrawn, or used for future purchases where Klarna is accepted.
There is no cap on the amount of cashback that can be earned; however, inactive accounts for 90 days may experience cashback expiration, except for members of the paid Klarna membership program, who enjoy no expiry on cashback rewards.
David Sandström, Klarna’s chief marketing officer, expressed, “Cashback is another avenue through which we are fulfilling our commitment to enhancing every purchase experience. It provides tangible value to consumers during the peak shopping season.”
Furthermore, Klarna offers interest-free repayment options on various payment plans like “Pay in 30 days” and “Pay in 3”. Late payments may incur charges, such as a £5 fee for orders above £30 or 25% of the purchase price for orders under £20. Additionally, missed payments can impact credit reports if shared with credit agencies.
In response to concerns raised by the Financial Conduct Authority (FCA) about buy now, pay later services potentially leading customers into unmanageable debt, new regulations will require providers to assess affordability, provide financial assistance, and allow complaints to the Financial Ombudsman Service. These rules are set to be enforced under the FCA’s jurisdiction starting in July 2026, with firms having six months to seek full authorization under the new regime.