KLARNA is launching a reward scheme that will give you money off when you use buy now, pay later.Shoppers in the UK will be able to earn points each time they make a payment on time, or make a purchase upfront using Klarna’s “pay now” option.
1Now you can get points for paying on timeCredit: Getty
For each £1 paid via pay now, pay later, shoppers earn one point, provided you pay it on time which is typically within 30 days or less.
It also applies to “pay over time” which is longer financing where repayments are made over three to 12 months and again you’ll need to make payments on time to get the points.
Once you get 250 points, you’ll typically get a £5 gift voucher or discount for up to 20% at certain shops.
You’ll unlock the rewards for each 250 points you earn and to redeem the rewards you’ll have to shop through the Klarna app.
Decathlon, Caffe Nero, River Island are among the brands you’ll be able to get money off with Klarna rewards, but the vouchers and gift cards available will depend at the time.
You’ll also be able to earn extra points by using features in the Klarna app.
Most read in Money
You can build up points over time and they won’t expire, but once you’ve chosen to “unlock” a reward you’ll need to claim it within 90 days.
The reward itself may also have a deadline for using it, depending on the retailer, so it’s worth checking this on any vouchers you get.
If you later return an item you’ve paid for using Klarna, the points will be taken off your balance.
Klarna said the new loyalty scheme, which is launching this spring, will “reward responsible use of buy now pay later” and puts the emphasis on repayment.
Stepchange has urged caution among shoppers to cehck they can afford to borrow in the first place.
Sue Anderson from the debt charity said: “Any schemes that incentivise consumer spending and borrowing need to be regarded with caution.
“Our recent research has found that half of those with a Buy Now, Pay Later loan say they find it difficult to keep up with household bills and credit repayments, so it’s important consumers aren’t distracted by any carrots that are dangled in front of them and simply stick to assessing whether they’ll be able to comfortably meet any future repayments.”
The organisation previously warned about the “obvious risks” when rewards launched in the US in 2020.
For some shoppers, BNPL could be a slippery slope into a spiral of debt encouraging spending cash they can’t afford to pay back.
The financial regulator has announced plans to tighten the rule …
Read more…….
