Klarna has introduced a new cashback program for its 12 million customers in the UK. Klarna, known for its buy now, pay later service, now offers a cashback feature that allows users to earn up to 10% back on their purchases made through the Klarna app. Participating retailers in this scheme include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more to be added soon.
The cashback earned can be used towards the Klarna balance, withdrawn, or saved for future purchases where Klarna is accepted. There is no limit to the amount of cashback that can be earned, but inactive accounts may see their cashback expire after 90 days, except for members of the paid Klarna membership scheme who enjoy cashback benefits without an expiry date.
David Sandström, Klarna’s chief marketing officer, expressed, “Cashback is another way we’re delivering on our promise to make every purchase smarter. It gives consumers real value back at their favourite retailers, just as the busiest shopping season approaches.”
Klarna provides interest-free repayment options for most payment plans, such as “Pay in 30 days” and “Pay in 3”. Late payment fees may apply if a payment is missed, with a £5 charge on orders over £30 or 25% of the purchase price for orders under £20. Additionally, failing to make payments on time might negatively impact credit reports if information is shared with credit referencing agencies.
In response to concerns about customers taking on unaffordable debt, the Financial Conduct Authority (FCA) has initiated a consultation on buy now, pay later products. Proposed regulations would require providers to assess borrowers’ repayment capabilities and offer assistance in case of financial difficulties. Borrowers would also have the option to escalate complaints to the Financial Ombudsman Service. The new rules are expected to be enforced when buy now, pay later falls under FCA oversight in July 2026, allowing firms six months to seek full authorization.
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