Klarna, a popular buy now, pay later service with 12 million customers in the UK, has introduced a new cashback program. This initiative allows users to earn up to 10% cashback on their online purchases made through the Klarna app. Participating retailers include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more to be added soon.
The cashback rewards can be utilized within the Klarna app by applying them to the Klarna balance, withdrawing them, or using them towards future purchases wherever Klarna is accepted. While there is no limit on the cashback earnings, inactive accounts for 90 days may result in the expiration of the cashback, except for those enrolled in the paid Klarna membership program, where cashback does not expire.
David Sandström, Klarna’s chief marketing officer, highlighted the value of the cashback feature, emphasizing its benefits for consumers during the busy shopping season. Klarna provides interest-free repayment options for many 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 under £20. Additionally, missed payments may be reported to credit agencies, potentially impacting creditworthiness.
In response to concerns about consumer debt, the Financial Conduct Authority (FCA) has proposed new regulations for buy now, pay later services. Under the new rules set to be enforced from July 2026, providers will be required to assess borrowers’ ability to repay and offer assistance in case of financial difficulties. Borrowers will have recourse to the Financial Ombudsman Service in case of any issues, aligning with efforts to enhance consumer protection in the buy now, pay later sector.