In a significant move for the retail sector, Klarna has announced a major new feature for its 11 million UK customers: cashback rewards. The popular Buy Now Pay Later service is rolling out this initiative, allowing shoppers to earn money back on their purchases just as the crucial Christmas shopping period begins.
How the New Klarna Cashback Works
The new system is designed to be straightforward for users. Shoppers can earn up to 10% cashback on purchases made at a wide range of well-known retailers. Prominent stores participating in the scheme include Boots, JD Sports, Expedia, Dyson, and Samsung, with many having a presence in cities like Birmingham.
David Sandström, Chief Marketing Officer at Klarna, stated: “Cashback is another way we’re delivering on our promise to make every purchase smarter.” He emphasised the timing, adding, “It gives consumers real value back at their favourite retailers, just as the busiest shopping season of the year kicks off.”
Accessing and Using Your Cashback Rewards
To start earning, users simply need to browse stores within the Klarna app and accept cookies if prompted. Once an order is confirmed, the cashback will automatically appear in the user's app. There is no earning limit on how much cashback a customer can accumulate.
The cashback can be earned on eligible purchases made through the Klarna app, regardless of the payment method chosen. For those with a Klarna membership, an additional benefit exists: they can also earn cashback when using their Klarna Card, provided they pay in full using their Klarna balance.
To collect and use the rewards, customers must open a free Klarna balance within the app. The cashback is then redeemed as a credit to this balance, which can be applied directly to the next purchase. For added flexibility, Klarna members can choose to convert their earnings into airline points or gift cards.
Customer Reactions and Broader Impact
The announcement has been met with positive feedback from early users. One shopper described it as a “Fabulous way to spread the cost of shopping. very straight forward to use.” Another enthusiastic user recommended the service, saying, “I would recommend Klarna any day, any time. It’s by far the best money app ever made. It’s flexible and easy to use, good financing with tailor made customer support.”
This strategic launch positions Klarna to capture a larger share of the festive spending market by offering tangible savings, making it a potentially transformative development for UK consumers seeking value during a time of increased expenditure.
