Klarna targets British shoppers with loyalty scheme that ‘encourages overspending’

Industry News | 27/06/20

Young shoppers could be encouraged to overspend by a new “loyalty” programme being launched by Britain’s biggest “buy now, pay later” firm. Klarna, which offers shoppers the chance to purchase items even if they do not have enough money in the bank to buy them outright, will launch its Vibe rewards programme in Britain next year. The scheme was launched in America earlier this month and offers points – known as “vibes” – when a customer spends using Klarna.
Users are rewarded with gift cards and “shopping experiences” when they collect enough points.

However, there are fears that reward schemes can encourage consumers to spend beyond their means. StepChange, the debt charity, said Klarna’s scheme carried “obvious risks” for young shoppers, who were the most common users of such services.

Source: The Telegraph