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 customers the opportunity to earn up to 10% cashback on their purchases made through the Klarna app. Participating retailers in this cashback scheme include Boots, Expedia, Dyson, Samsung, and Hotels.com, with more expected to join.
The cashback earned can be utilized within the Klarna app, used to offset balances, withdrawn, or saved for future purchases where Klarna is accepted. Customers can accumulate cashback without any limit, but inactive accounts for 90 days may see their cashback expire, except for those enrolled in the paid Klarna membership program, which enjoys cashback without expiry.
David Sandström, the Chief Marketing Officer at Klarna, stated that the introduction of cashback is part of the company’s commitment to enhancing the shopping experience for consumers, offering them value during the busiest shopping season.
Klarna provides interest-free repayment options on many payment plans, such as “Pay in 30 days” and “Pay in 3.” However, missing a payment could result in a late fee of £5 for orders over £30 or 25% of the purchase price for orders under £20. Moreover, failure to make timely payments may negatively impact your credit report as Klarna shares information with credit reference agencies.
In response to concerns about customer debt, the Financial Conduct Authority (FCA) has initiated a review of buy now, pay later services. Under new proposals, providers will be required to assess customers’ affordability and offer assistance in case of financial struggles. Borrowers will have the option to raise complaints to the Financial Ombudsman Service, with the regulations set to be enforced when FCA oversight extends to buy now, pay later services in July 2026. Companies will have six months from the implementation date to seek full authorization.
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