KLARNA has revealed a huge change for its customers and it means you can earn free cash before Christmas.
The Buy Now Pay Later (BNPL) provider has launched a new cash back feature for shoppers, The Sun can reveal.
Cash back, which is offered by banks, credit cards, and retailers, allows you to earn money back on your purchases.
The Swedish fintech said customers can earn up to 10% back on purchases made at a range of retailers including Boots, JD Sports, Expedia, Dyson and Samsung.
So for example, if customers
To use the feature, customers will need to shop online through the Klarna app from participating retailers which offer the service.
Once you pay for your item – either in full or using its pay later scheme – the cash back is added to your balance in the app.
Once added, the cashback can be used towards a future purchase or redeemed as e-money on the user’s Klarna balance, where funds can also be withdrawn.
Klarna said there is no earning limit to how much cashback you can earn.
Those signed up for its paid membership scheme will also not face any expiry date on their cashback.
For non-members, cashback remains active as long as you shop on the app at least once every 90 days.
If your account is inactive for 90 days, your cashback may expire.
However, Klarna said if you already have a Klarna balance, it will move your money there before it expires.
A Klarna balance is a digital wallet within the app that allows you to store money.
David Sandström, CMO at Klarna, said: “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 of the year kicks off.”
Cashback can be a great way to earn some extra money on a planned purchase.
But it is important to be careful and not make rash purchases because there is a chance to earn a small amount of money back.
Klarna is not the only fintech to roll out the feature to its users.
A few years back, digital banking app Monzo also launched a cashback offer for customers.
Here, shoppers can also earn up to 10% when they shop at a range of stores including Superdrug and Sainsbury’s.
Meanwhile, PayPal just launched a new debit card which offers the service too.
Customers earn 1% cashback on every purchase you make with the card, and there is no minimum spend before you can collect points.
Every point is worth 1p and can be spent when you check out with PayPal online at millions of shops worldwide.
All change
It comes as the BNPL provider recently launched a feature where Primark customers can arrange to split payments for purchases they make in-store.
To use the feature, you will need to download the Klarna app and register for the service if you have not done so before.
You will then need to search for Primark in the app and choose the option to shop in-store.
Here you will be given the chance to create a “one-time” card, which can be added to your Apple or digital wallet.
And the feature is not only available for Primark shoppers.
Klarna’s pay-in-store feature is also available to use in a range of retailers such as Nike, JD Sports and New Look.
In 2022, the Swedish fintech also launched a credit card, which allows customers to use the service in-store too.
And last month, the Buy Now Pay Later (BNPL) provider said it will also offer a flexible Visa debit card for UK shoppers, which can be converted into a credit card.
The card is linked to your Google or Apple Wallet, so you may need a smartphone to use the service.
The card has launched in a digital form, but there are plans to roll out a physical card.
Klarna’s payment options are interest-free, but customers can still be charged if they fall behind on payments.
Missing a payment does not trigger interest charges – instead, a late fee may apply which is capped at £5 or 25% of the order value, whichever is the lower amount.
Is Klarna right for you?
It is also worth noting that unlike using a credit card, ‘buy now, pay later’ does not currently give consumer Section 75 protection.
However, this is set to change in July 2026 when new regulations are due to take effect.
Under Section 75 of the Consumer Credit Act, a credit card company can be held jointly liable for a purchase that turns out to be shoddy or does not materialise.
This means a shopper can potentially get a refund from the credit card company if they cannot recover their costs from a retailer.
Those using a debit card or credit card for purchases can also potentially get their money back via the chargeback scheme.
Consumers can take complaints relating to the debit card functionality and Klarna balance to the Financial Ombudsman Service (FOS).
However, its Pay in 3 interest-free instalment plans accessible through the card are currently not regulated under the Consumer Credit Act.
Klarna said it has set up an internal adjudicator which is designed to fulfil a similar role before regulation comes into place.
How to cut the cost of your debt
IF you’re in large amounts of debt it can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis – knowing your spending patterns is the first step to managing your money
Work out your budget – by writing down your income and taking away your essential bills such as food and transport
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum – If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner – If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts – If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don’t pay
Get advice – If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans.
