In a significant move for the UK retail sector, the payments firm Klarna has unveiled a major new cashback service for its millions of British users. This initiative, launched on 14th November 2025, is designed to offer shoppers a fresh way to save money as the crucial festive shopping period gets underway.
How the New Klarna Cashback Service Works
The newly launched feature is available directly through the Klarna app. Shoppers can earn up to 10% cashback on online purchases made with hundreds of participating retailers. Prominent names on the list include high-street favourite Boots, food delivery service Just Eat, and online marketplace Temu, alongside other major brands like Expedia, Dyson, Samsung, and Hotels.com.
Klarna has confirmed that new retailers are being added to the scheme every week, expanding the opportunities for savings. A key advantage for consumers is the flexibility of the service; the cashback is applied regardless of whether the customer pays using a Klarna payment option, such as 'Pay in Full' or 'Pay Later', or an alternative payment method like a debit or credit card.
Accessing Your Rewards and Global Success
Once a purchase is confirmed and the standard returns period has ended, the cashback is automatically credited to the user's "Cashback balance" within the Klarna app. From there, users have multiple options for their rewards. The cashback can be redeemed as e-money to their Klarna balance, which can then be withdrawn to a bank account or used towards a future purchase wherever Klarna is accepted.
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 that the feature provides "real value back at their favourite retailers," strategically timed for the busiest shopping season of the year.
This is not a untested venture for the company. The cashback service is already live in 15 other markets and has proven successful, having returned more than $25 million to consumers globally. It represents the latest addition to Klarna's expanding suite of shopping tools, which also includes a flexible debit card and a membership programme offering premium perks.
Important Considerations for Users
To collect cashback, users must have a Klarna balance account. Klarna also cautions that cashback distribution is subject to retailer approval and can be influenced by factors such as cookie preferences, stacking offers, and excluded products. As with all financial promotions, restrictions, terms and conditions apply.
For British consumers looking to maximise their spending power during the costly holiday season, this new service from Klarna provides a tangible way to get money back on everyday and large-scale purchases alike.
