Which? raises concerns over eBay incentivising shoppers to use Klarna
An eBay promotion offering discounts to shoppers who paid with Klarna risked encouraging the use of unregulated 'buy now, pay later' (BNPL) credit, Which? warns.
BNPL schemes, such as Klarna, Clearpay and PayPal's Pay in 3, allow shoppers to delay payment or spread the cost in interest-free instalments. But while they may seem convenient, these are still credit products – and they’re not yet regulated by the Financial Conduct Authority (FCA).
As a result, customers don’t benefit from the same protections as regulated credit, such as Section 75 cover or access to the Financial Ombudsman Service. Missed repayments can also lead to late fees, a damaged credit record or even debt collection.
eBay's promotion offered money off to customers who paid with Klarna's Pay in 3 product. In eBay’s newsletter promoting the deal, the relevant credit disclaimer - explaining the risks of taking out BNPL credit - did not appear on all devices.
Here, we take a closer look at the promotion and explain how to shop safely if you're using BNPL schemes.
What eBay offered in its Klarna promotion
Online marketplace eBay offered the following deals to those who paid with Klarna:
- Spend £70 - £149.99 and receive £5 off
- Spend £150 - £249.99 and receive £10 off
- Spend £250 - £549.99 and receive £20 off
- Spend £550 or more and receive £50 off
It promoted the deals in a newsletter in August, with the subject line: 'save extra when you pay with Klarna 💸'. The email also encouraged shoppers to ‘give your wish list some TLC and shop the things you love’.
However, Which? noticed that the email and the promotion’s terms and conditions page did not clearly set out the risks of taking out credit. Missed Klarna repayments can lead to up to £10 in late fees, marks on your credit file and referral to a debt collection agency.
What did eBay say?
When Which? contacted eBay about its concerns, the company said the required credit disclosure had been clipped from the bottom of the email on some devices due to rendering issues. It told us the issue has now been corrected, with the disclaimer moved higher up in its newsletters to ensure visibility.
The statement, which Klarna requires retailers to include, is: ‘Klarna’s Pay in 3 is an unregulated credit agreement. Borrowing more than you can afford or paying late may negatively impact your financial status and ability to obtain credit. 18+. UK residents only. Subject to status. T&Cs and late fees apply.’
Klarna told us it provides merchants with clear guidelines to ensure that the required disclosures are present, highlighting that Pay in 3 is unregulated.
It says its purchases come with Klarna's Buyer's Protection, which means customers will never pay for items that aren't delivered or faulty, and that it has introduced an internal complaints adjudicator as an interim step until its customers can access the Financial Ombudsman Service (FOS) when regulation comes into force next year.
- Find out more: BNPL schemes explained
Do other retailers promote BNPL options?
This isn’t the first time Which? has raised concerns about retailers offering incentives linked to unregulated BNPL credit.
In 2022, we reported on promotions run by JD Sports-owned brands – including JD Sports, Size and Tessuti – which offered free standard or express delivery when customers selected BNPL at checkout.
At the time, Which? expressed concern that some of the promotional language – including phrases such as ‘hate waiting for delivery but want free garms?’ – could trivialise the decision to take out credit.
In April 2025, JD Sports ran another promotion, offering £10 off orders over £100 when customers paid using Klarna.
In response, JD Sports told Which?: ‘We provide our customers with a variety of payment methods so they can decide what works best for them. The April promotion referenced provided customers with the option to use Klarna to pay in full at the time of purchase. All of our payment options are listed with clear links to terms and conditions, as well as FAQs and contact details for each payment provider.’
What are the rules for BNPL promotions?
Retailers promoting BNPL products must follow advertising rules that are designed to protect consumers.
The Advertising Standards Authority (ASA) told Which?: ‘The advertising rules make clear ads must be prepared with a sense of responsibility to consumers and to society. It’s important that ads for BNPL services are responsible because these forms of payment involve borrowing money. Advertisers should make sure they don’t encourage excessive spending through the use of credit.’
As part of its consultation on BNPL regulation, the FCA is currently looking into how BNPL firms exploit behavioural biases, and how this can lead to consumers spending more than they otherwise would.
Plans to regulate BNPL schemes were first announced in 2021, after a number of Which? investigations exposed consumer harm in the sector. But frustratingly, it's taken a long time for these much-needed protections to come into force.
Earlier this year, the government announced that regulation would finally come into force in 2026, bringing BNPL products in line with other types of credit.
Under the new rules, shoppers will be able to make Section 75 claims and complain to the FOS about any issues they've experienced.
BNPL providers will also have to carry out upfront affordability checks to ensure shoppers can manage the debt they're taking on, as well as follow consistent standards so shoppers know what they're signing up to and how to get help if needed.
- Find out more: why has BNPL regulation taken so long?
How to shop safely with BNPL
While saving money on a purchase or avoiding delivery fees might sound appealing, it’s important to understand the risks of taking out credit before using a BNPL scheme. Missed repayments can lead to late fees, a damaged credit score and even referral to a debt collection agency.
Before signing up, follow these tips to use BNPL safely:
- Set up alerts: Add repayment reminders to your diary or phone so you know exactly what to pay back and when. This is particularly useful if you have several repayments to make.
- Draw up a budget: Work out how much you're paying back each month and how much money you can spend. Don't be tempted to spend more just to trigger a promotion or reach your credit limit.
- Don't overextend your borrowing: Think carefully about whether you'll be able to meet existing BNPL repayments before applying for credit from other providers.
- Make returns promptly: If you want to send something back, do it quickly so you don’t end up making a repayment for it. Some BNPL users have told Which? that refunds can take longer to process, so it’s worth acting fast.
- Contact the BNPL scheme if you’re struggling: Some providers let you snooze or freeze repayments, but you’ll usually need to act before the payment is missed.
