Klarna has revealed plans to introduce a fresh cashback program for its 12 million customers in the UK. Klarna, known for its buy now, pay later service, will now offer customers the opportunity to earn up to 10% cashback on their online purchases through the Klarna app.
The cashback initiative includes popular retailers such as Boots, Expedia, Dyson, Samsung, and Hotels.com, with more merchants to be added soon. Customers can access their cashback rewards within the Klarna app and utilize them to reduce their Klarna balance, withdraw the funds, or use them for future Klarna purchases.
There are no restrictions on the amount of cashback that can be earned; however, if an account remains inactive for 90 days, the cashback may expire, except for members of the paid Klarna membership program who enjoy cashback without an expiry date.
David Sandström, Klarna’s chief marketing officer, emphasized the significance of the cashback feature, stating, “Cashback is another way we’re fulfilling our commitment to enhancing every purchase experience by providing consumers with tangible benefits at their favorite retailers, just in time for the busiest shopping period of the year.”
Moreover, Klarna offers interest-free repayment options on most payment plans, such as “Pay in 30 days” and “Pay in 3.” Late payment fees may be charged, varying from £5 for orders over £30 to 25% of the purchase price for orders under £20. Additionally, missed payments may impact credit reports if shared with credit referencing agencies.
In response to concerns about customers accumulating unmanageable debt, the Financial Conduct Authority (FCA) has initiated a consultation on buy now, pay later products. Proposed regulations aim to ensure affordability checks are conducted, provide support for individuals facing financial challenges, and grant access to the Financial Ombudsman Service for complaint resolution. These regulations are anticipated to be enforced under FCA oversight starting in July 2026, giving firms six months to seek full authorization.
By focusing on responsible borrowing and timely repayments, customers can demonstrate their financial reliability while benefiting from convenient payment options like those offered by Klarna.