Klarna, a popular buy now, pay later service with 12 million UK customers, 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 in the future.
The cashback rewards are accessible through the Klarna app and can be used to offset Klarna balances, withdrawn as cash, or utilized for future Klarna transactions. While there is no cap on the amount of cashback that can be earned, accounts inactive for 90 days may see their cashback expire, except for members of the paid Klarna membership scheme who enjoy cashback benefits without expiry.
David Sandström, Klarna’s chief marketing officer, emphasized the value of the cashback feature in enhancing the shopping experience for consumers, particularly during the upcoming busy shopping season. Klarna offers interest-free repayment options such as “Pay in 30 days” and “Pay in 3”, but late payments can incur fees ranging from £5 for orders over £30 to 25% of the purchase price for orders under £20.
To ensure responsible lending practices, the Financial Conduct Authority (FCA) is reviewing buy now, pay later products to prevent consumers from accumulating unmanageable debt. Under proposed regulations, buy now, pay later providers must assess borrowers’ ability to repay loans and offer assistance if financial challenges arise. Borrowers will also have recourse to the Financial Ombudsman Service for dispute resolution when the FCA oversees buy now, pay later services starting in July 2026, with firms having six months to seek full authorization under the new rules.