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 a cashback feature that enables users to receive up to 10% back on purchases made through the Klarna app.
The cashback scheme includes major retailers like Boots, Expedia, Dyson, Samsung, and Hotels.com, with additional partners being added regularly. Customers can access their cashback rewards through the Klarna app and can choose to apply it to their Klarna balance, withdraw it, or use it for future purchases wherever Klarna is accepted.
While there is no limit on the amount of cashback that can be earned, inactive accounts may see their cashback expire after 90 days, unless they are part of Klarna’s paid membership program, in which case there is no expiry.
David Sandström, Klarna’s chief marketing officer, stated, “Cashback is another way we’re fulfilling our commitment to enhance every purchase experience. It provides real value to consumers from their favorite retailers, especially as the holiday shopping season commences.”
Klarna offers interest-free repayment options on most payment plans, such as “Pay in 30 days” and “Pay in 3.” However, late payments may incur a £5 fee for orders over £30 or 25% of the purchase price for orders under £20. Additionally, missed payments could negatively impact your credit report if shared with credit referencing agencies.
In response to concerns about customers accumulating unaffordable debt, the Financial Conduct Authority (FCA) is reviewing buy now, pay later products. New regulations may require providers to assess affordability, offer financial support to those in need, and allow complaints to the Financial Ombudsman Service for dispute resolution. These rules are expected to be enforced when buy now, pay later services come under FCA jurisdiction in July 2026.
Companies will have six months from the implementation date to seek full authorization under the new regime.