Klarna has introduced a fresh cashback program for its 12 million customers in the UK. Klarna, a buy now, pay later service, now offers a cashback feature enabling customers to receive up to 10% back on their online purchases through the Klarna app.
Participating retailers in the cashback initiative include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more to be added soon. The cashback can be utilized within the Klarna app to pay off balances, withdraw funds, or put towards future Klarna purchases.
There is no earning limit on cashback, but inactive accounts for 90 days may see their cashback expire. However, this rule does not apply to members of the paid Klarna subscription, as cashback does not expire for them.
David Sandström, Klarna’s chief marketing officer, expressed, “Cashback is another way we’re fulfilling our commitment to enhance every purchase with added value for consumers, especially as the peak shopping season approaches.”
Moreover, Klarna provides interest-free repayment options for most payment plans like “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 may impact credit reports if shared with credit agencies.
The Financial Conduct Authority (FCA) has initiated a consultation on buy now, pay later products due to concerns about customers taking on unmanageable debts. Proposed regulations would require providers to assess borrowers’ repayment capabilities and offer assistance if financial challenges arise. Customers would also have recourse to the Financial Ombudsman Service for complaints. The new rules are set to be enforced when buy now, pay later falls under FCA jurisdiction in July 2026, giving firms six months to seek full authorization.