Klarna, the AI-powered global payments network and shopping assistant, has released impressive data following the launch of its cashback feature. In just six weeks since launching on 15 August, over half a million Klarna shoppers have earned a combined $2.7 million in cashback, with participating merchants providing cashback on $98.4 million worth of sales.
The cashback feature was launched simultaneously in 12 countries, rewarding shoppers who use the Klarna app with a percentage of their purchases at selected retailers. The earned cashback is stored in the shopper’s Klarna ‘balance’ account, where Klarna also pays interest on the money held.
Raji Behal, Head of Western and Southern Europe, UK & Ireland at Klarna, commented on the initial success: “The take-up has been phenomenal! Cashback is driving a huge uptick in conversion for our merchant partners, and consumers are earning money while they shop… and after they stop!”
Since its introduction, Klarna has supported over 1,000 cashback promotions, with initial rates ranging from 1% to 10%. However, due to the significant success and positive results seen by merchants, many have opted to increase their cashback rates, with some even doubling them. Klarna now also offers “boosted rates,” which allow merchants to temporarily raise cashback percentages to support domestic campaigns or coincide with key retail events.
Klarna’s cashback feature is designed to enhance the shopping experience by providing consumers with tangible rewards, while simultaneously driving increased sales and conversions for merchants.
