Klarna has introduced a new cashback program for its 12 million customers in the United Kingdom. Klarna, known for its buy now, pay later service, now offers up to 10% cashback on purchases made through its app. Participating retailers include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more to be added.
Customers can access the cashback rewards through the Klarna app and use them to pay off their Klarna balance, withdraw the funds, or apply them towards future purchases where Klarna is accepted. There is no limit to the amount of cashback that can be earned, but inactive accounts for 90 days may see their cashback expire, except for those enrolled in the paid Klarna membership scheme.
David Sandström, Klarna’s chief marketing officer, remarked that the cashback initiative enhances the customer experience by providing value during the peak shopping season. Klarna also offers interest-free repayment options such as “Pay in 30 days” and “Pay in 3”, but late payments may incur a fee. Sharing of customer information with credit agencies could impact credit reports, emphasizing the importance of timely repayments.
The Financial Conduct Authority (FCA) has initiated a review of buy now, pay later products to address concerns about consumer debt levels. Proposed regulations aim to ensure affordability assessments, financial support for those in need, and the ability for customers to escalate complaints to the Financial Ombudsman Service. These rules are expected to be enforced under the FCA’s jurisdiction starting July 2026, with companies having six months to seek full authorization once the regulations are in place.