Klarna has introduced a new cashback program for its 12 million customers in the UK. Klarna, known for its buy now, pay later service, is offering customers the opportunity to earn up to 10% cashback on purchases made through its app. The cashback feature applies to various retailers such as Boots, Expedia, Dyson, Samsung, and Hotels.com, with more retailers expected to join.
Customers can access their cashback rewards within the Klarna app, where they can use it to offset their Klarna balance, withdraw the funds, or apply it towards future purchases where Klarna is accepted. While there is no limit on the amount of cashback that can be earned, inactive accounts for 90 days may lead to cashback expiration, unless the account is part of the paid Klarna membership program, which exempts cashback from expiring.
David Sandström, Klarna’s chief marketing officer, emphasized the value of the cashback program as a means of enhancing the shopping experience for consumers, particularly during the upcoming busy shopping season. Klarna offers interest-free repayment options for most payment plans, but late payments may incur a fee. Additionally, missed payments could impact credit reports if shared with credit referencing agencies.
In response to concerns raised by the Financial Conduct Authority (FCA) regarding buy now, pay later products, new regulations are being proposed to ensure affordability checks on loans and provide assistance to individuals facing financial difficulties. Borrowers will have recourse to the Financial Ombudsman Service for complaints, with these rules set to be enforced under FCA oversight starting in July 2026. Companies will have a six-month window to seek full authorization once the regulations are in effect.
