Klarna to launch rewards programme in UK

Klarna is launching its rewards programme in the UK, as it expands its services in several markets.

The Swedish fintech is best known for its buy now, pay later offering in the UK, but offers a fuller range of products in other markets and is a regulated bank in its native Sweden.

Klarna’s rewards programme allows shoppers to earn points each time they pay immediately or make a repayment on time.

The rewards programme, which is launching in nine new markets including France and Canada, will hit the UK in the spring.

The programme launched in September 2020 and Klarna said it has already gained over four million members in the US and Australia, with one million members joining in the last quarter.

Points can be redeemed in the Klarna app at retailers including Decathlon, Caffe Nero and River Island.

Members also get exclusive deals and get early access to product drops.

Klarna, valued at a whopping $45.6bn, is also launching a new rewards feature called Missions, which are tasks that shoppers complete to earn reward points.

Announcing the UK launch of its rewards programme, the boss of Klarna UK hit out at traditional credit card firms.

Alex Marsh said: “With our rewards programme, we help consumers get more out of every pound they spend and reward responsible use of buy now pay later by putting the emphasis on repayment, not purchase.

“This contrasts with traditional credit card providers which encourage irresponsible spending by rewarding consumers for making a purchase but then charge double-digit interest when they can’t afford to repay their bill at the end of the month.” 

Meanwhile, Klarna is launching its instant payment function, Klarna Pay Now, which launched in the UK in 2021, in nine news markets.

Klarna, Europe’s most valuable fintech, is also said to be weighing up a new funding round, which would see it valued at around  $60bn, according to reports.