Do UK Supermarkets Accept Klarna, Clearpay, or PayPal?
Online shopping has changed how we pay for everything, including groceries. Flexible payment options like Klarna, Clearpay, and PayPal make it easier to budget, split payments, or pay later. But when it comes to UK supermarkets, the rules can be confusing. Some accept these methods for online orders, some only for non-food purchases, and others don’t support them at all.
If you’ve ever wondered whether you can buy your groceries now and pay later, or use PayPal at checkout, this guide breaks down exactly how each major supermarket handles these payment options.
Why Flexible Payment Methods Are Growing
The popularity of services like Klarna and Clearpay reflects how shopping habits have evolved. More people are managing cash flow weekly and using “Buy Now, Pay Later” (BNPL) options for convenience rather than luxury. With living costs rising, spreading payments across paydays can make food budgeting easier.
However, supermarkets operate differently from typical online retailers. Because groceries are essential goods with fast turnover, they need to process payments instantly to manage deliveries, refunds, and substitutions. That’s why not all chains support BNPL yet — but some are starting to experiment.
Klarna and Clearpay Explained
Before checking which supermarkets accept them, it helps to understand how these services work.
Klarna
Klarna lets you buy items now and pay later, either in 30 days or in three instalments. It acts as an intermediary between you and the retailer, covering the cost upfront and collecting payment from you later.
Clearpay
Clearpay works similarly but splits payments into four interest-free instalments due every two weeks. It’s linked to your debit or credit card and automatically deducts each payment.
Both Klarna and Clearpay charge no interest if you pay on time, but they can affect your credit score if you miss payments.
PayPal Explained
PayPal is the most widely accepted digital payment system in the world. It lets you pay securely without entering card details every time. PayPal connects to your bank account or card and processes the transaction immediately. Unlike Klarna or Clearpay, PayPal does not offer instalment plans by default, though it has its own “Pay in 3” service in the UK for some retailers.
Tesco: Debit, Credit, and PayPal for Groceries
Tesco accepts most major debit and credit cards for both online and in-store purchases.
Klarna and Clearpay
Tesco does not currently support Klarna or Clearpay for grocery or non-food orders. The company prefers direct card payments for speed and reliability, especially for online grocery deliveries that may involve refunds for substitutions.
PayPal
Tesco accepts PayPal for selected online services, particularly Tesco Mobile and Tesco Photo, but not for grocery shopping. When paying for groceries online, you must use a debit or credit card linked to your Tesco account.
Verdict
Tesco is still a traditional player in this area. While it supports PayPal in limited contexts, Klarna and Clearpay are not yet available.
Asda: Debit, Credit, and Asda Rewards Integration
Asda accepts debit and credit cards online and in-store, as well as Asda Gift Cards and digital wallet payments like Apple Pay and Google Pay.
Klarna and Clearpay
Asda does not currently offer Klarna or Clearpay for grocery shopping. It’s been testing internal budgeting tools through its Asda Rewards app, but no BNPL features have launched publicly.
PayPal
Asda’s online grocery site does not support PayPal either. Payments must be made through card transactions. However, PayPal can sometimes be used on Asda’s George clothing website, since that platform runs on a different checkout system.
Verdict
Asda sticks to direct payment methods but could add BNPL options in the future through its digital expansion strategy.
Sainsbury’s: Traditional Payments Only
Sainsbury’s focuses on straightforward payments with strong security for its grocery services.
Klarna and Clearpay
Neither Klarna nor Clearpay is available for Sainsbury’s grocery purchases, whether in-store or online. Sainsbury’s maintains strict control over payment timing for food transactions to simplify refunds and substitutions.
PayPal
Sainsbury’s does not accept PayPal for groceries, either in-store or through its online platform. The payment methods available are debit cards, credit cards, Nectar points, and gift cards.
Verdict
Sainsbury’s is one of the most conservative supermarkets when it comes to alternative payment systems.
Aldi: Limited Online Payments
Aldi has a smaller online presence than other chains, so its payment system is simpler.
Klarna and Clearpay
Aldi does not accept Klarna or Clearpay for any online orders, including Specialbuys. Purchases must be paid in full at checkout using a debit or credit card.
PayPal
Aldi accepts PayPal for non-food items purchased online, such as Specialbuys, but not for groceries. For Click and Collect grocery orders, payments must be made via debit or credit card.
Verdict
Aldi’s payment system remains focused on simplicity. While you can use PayPal for certain non-food items, Klarna and Clearpay are not part of its payment network.
Lidl: Debit and Credit Cards Only
Lidl’s payment approach mirrors Aldi’s, keeping transactions simple and direct.
Klarna and Clearpay
Lidl does not accept Klarna or Clearpay for any purchases. It focuses on keeping operational costs low, which means limiting third-party payment processors.
PayPal
PayPal is not available for Lidl grocery or non-food purchases. In-store, you can pay via card, cash, or contactless wallets like Apple Pay or Google Pay.
Verdict
Lidl offers reliable, traditional payments but hasn’t yet adopted digital instalment services.
Morrisons: Standard Payments with Digital Wallets
Morrisons accepts debit cards, credit cards, and mobile wallet payments both in-store and online.
Klarna and Clearpay
Morrisons does not support Klarna or Clearpay for grocery transactions. Since fresh and perishable products dominate its sales, it requires immediate payment confirmation for orders.
PayPal
PayPal is accepted only for non-food orders placed through its Marketplace platform, not for groceries. If you shop on the main Morrisons grocery website, you’ll need to use a card payment method.
Verdict
Morrisons offers a solid online payment experience but no BNPL options yet for groceries.
Iceland: PayPal Accepted for Online Orders
Iceland stands out as one of the few UK supermarkets that fully accepts PayPal for online grocery orders.
Klarna and Clearpay
Iceland does not offer Klarna or Clearpay at checkout.
PayPal
You can use PayPal when shopping online for groceries at Iceland’s official website. This makes it one of the most flexible supermarkets for digital payments. The system processes PayPal transactions instantly, allowing smooth handling of refunds and delivery adjustments.
Verdict
Iceland wins when it comes to modern payment flexibility, offering PayPal where most competitors still don’t.
Co-op: Traditional Payments and App-Based Rewards
The Co-op keeps its payment process straightforward, with a focus on local convenience.
Klarna and Clearpay
Co-op does not accept Klarna or Clearpay for in-store or online shopping.
PayPal
Co-op’s online store and app do not currently support PayPal either. You can pay with a debit card, credit card, or through contactless options like Apple Pay.
Verdict
Co-op keeps things simple. While it lacks advanced digital payment systems, it offers secure, instant transactions across all stores.
Waitrose: Credit, Debit, and MyWaitrose Rewards
Waitrose caters to a premium market and focuses on reliability and security for payments.
Klarna and Clearpay
Waitrose does not accept Klarna or Clearpay for any purchases. The supermarket prefers immediate payment processing to avoid delays in order confirmation.
PayPal
Waitrose does not support PayPal for groceries or non-food items online. All payments must go through debit or credit cards or digital wallets.
Verdict
Waitrose is not part of the BNPL movement yet and prioritises traditional payment methods to maintain transaction speed and reliability.
Comparing Supermarket Payment Options
Here’s a clear overview of which supermarkets accept Klarna, Clearpay, or PayPal in 2025:
| Supermarket | Klarna | Clearpay | PayPal | Notes |
|---|---|---|---|---|
| Tesco | ❌ | ❌ | ⚠️ Limited (non-food only) | Not for groceries |
| Asda | ❌ | ❌ | ⚠️ Limited (George only) | No grocery support |
| Sainsbury’s | ❌ | ❌ | ❌ | Traditional payments only |
| Aldi | ❌ | ❌ | ✅ Non-food only | Groceries excluded |
| Lidl | ❌ | ❌ | ❌ | Card and wallet only |
| Morrisons | ❌ | ❌ | ⚠️ Limited (Marketplace only) | No grocery PayPal |
| Iceland | ❌ | ❌ | ✅ Yes | PayPal accepted for groceries |
| Co-op | ❌ | ❌ | ❌ | Card and contactless only |
| Waitrose | ❌ | ❌ | ❌ | Traditional methods only |
✅ = Accepted | ⚠️ = Limited use | ❌ = Not accepted
Why Most Supermarkets Avoid Klarna and Clearpay
The main reason UK supermarkets avoid BNPL options is practicality. Grocery orders involve perishable goods, substitutions, and refunds. If a customer rejects an item at delivery, partial payments through third-party finance tools complicate the refund process. Instant card payments are simpler and faster.
Another factor is regulation. Financial services like Klarna and Clearpay are under stricter government review. Supermarkets prefer to avoid added compliance responsibilities while still offering fast, secure payments.
The Growing Role of PayPal
While Klarna and Clearpay face logistical barriers, PayPal continues to grow in supermarket retail. Iceland has proved that PayPal can work seamlessly for grocery orders. As other supermarkets modernise their e-commerce systems, it’s likely more chains will follow Iceland’s example.
PayPal offers several advantages:
- Secure checkout without sharing card details.
- Instant payment confirmation for fast delivery processing.
- Simple refunds for missing or substituted items.
These benefits make PayPal a good middle ground between convenience and control.
Future of Payment Options in UK Supermarkets
By late 2025, more supermarkets are expected to integrate flexible payments into their online stores. Klarna has already begun talks with major UK retailers outside the grocery sector, and similar partnerships could extend into food shopping as systems improve. Tesco and Asda, with their strong online presence, are likely to lead this expansion.
For now, supermarkets focus on integrating digital wallets (Apple Pay, Google Pay, Samsung Pay) rather than BNPL systems. These options already provide speed, security, and contactless convenience without adding financial complexity.
Tips for Shoppers
- Use PayPal at Iceland: It’s currently the only major supermarket that lets you pay for groceries this way.
- Stick to Loyalty Cards for Extra Value: Tesco Clubcard, Asda Rewards, and Sainsbury’s Nectar can still help you save more than BNPL methods.
- Avoid Debt Traps: BNPL options can seem appealing but make sure to pay on time. Late fees or missed instalments affect your credit rating.
- Plan Ahead: If you’re short on cash before payday, buy essentials first and delay non-essentials.
- Check Payment Methods Before Checkout: Supermarkets occasionally update their payment systems, especially during app upgrades.
Final Verdict: Where You Can Use Klarna, Clearpay, or PayPal
Right now, no major UK supermarket accepts Klarna or Clearpay for grocery purchases. These services are better suited to clothing and tech retailers. However, Iceland stands out as the most flexible chain by allowing PayPal for online grocery orders. Tesco, Aldi, and Asda also support PayPal for some non-food services, but not for food delivery.
For everyday shopping, debit and credit cards remain the standard, supported by digital wallets for convenience. If you value flexibility, use PayPal where possible and watch for new payment updates later in 2025. The future is clearly moving toward more choice and contactless solutions, but for now, supermarkets still keep it simple — pay instantly, shop smart, and stay within budget.
