Which? raises concerns as Ebay promotes Klarna BNPL discounts

A consumer charity has raised concerns about Ebay's August promotion that offered shoppers a discount for paying with Klarna's Pay in 3 BNPL option. Which? said the deal risked encouraging BNPL use.

In the promotion, customers spending between £70 and £149.99 would receive £5 off, while those spending £550 or more could save £50. The email carried the subject line 'Save extra when you pay with Klarna' and urged shoppers to "give your wish list some TLC and shop the things you love".

Which? said the relevant credit-disclosure disclaimer did not appear on all devices due to rendering issues, complicating consumers' ability to weigh the risks of BNPL. Ebay said the issue had been corrected and the disclaimer moved higher up in the newsletters to ensure visibility.

BNPL schemes, such as Klarna, Clearpay and PayPal's Pay in 3, allow shoppers to delay or spread payments in interest-free installments, but they are not yet regulated by the Financial Conduct Authority, meaning customers do not enjoy the same protections as regulated credit, such as Section 75 coverage or access to the Financial Ombudsman Service. Missed repayments can lead to late fees, a damaged credit record or debt collection.

This is not the first time Which? has raised concerns about BNPL incentives. In 2022, it reported on promotions by JD Sports-owned brands offering free standard or express delivery when BNPL was selected. In April 2025, JD Sports ran another promotion offering £10 off orders over £100 when customers paid with Klarna.

Advertising rules from the Advertising Standards Authority require BNPL ads to be prepared with a sense of responsibility to consumers and society. The ASA said ads should not encourage excessive spending through the use of credit, and retailers must ensure warnings and important information are clear to shoppers.

Ebay said the required credit disclosure was clipped from the bottom of the email on some devices due to rendering issues. The company told Which? the issue had been corrected, with the disclaimer moved higher up in its newsletters to improve visibility. Klarna said Pay in 3 is an unregulated credit agreement and that it provides buyers protections, with a buyer guarantee that ensures items are delivered or refunded if faulty, and it has introduced an internal complaints adjudicator until customers can access the Financial Ombudsman Service.

The incident underscores ongoing debates over BNPL marketing and consumer protections as digital lending expands across online shopping platforms.