Sweaty Betty among latest additions to Clearpay BNPL roster
Buy now pay later specialist Clearpay has announced new partnerships with fashion and beauty brands, Sweaty Betty, Feelunique, Mainline Menswear, Hawes & Curtis and Ghost, as well as DIY store, FFX.
The venture, which is known as Afterpay outside the UK and Europe, has two million UK customers who use its service at more than 6,000 retailers.
Rich Bayer, UK Country Manager at Clearpay, says: “We’re delighted to welcome our new merchants to Clearpay, who now have access to our large and growing number of engaged customers, and can enjoy increased conversion rates, incremental sales that are higher than other payment methods and lower return rates.”
He adds: “When looking at the sector as a whole, BNPL spend has grown by 260% since January 2020, compared to stagnation for credit cards.”
“With customers increasingly turning to a payment method like Clearpay that enables them to spend responsibly, initiatives such as Clearpay Day enable a win win, as our merchants boost sales, while our customers enjoy great savings on purchases with their favourite brands.”
Trouble ahead?
Global spending via e-commerce buy now pay later services will reach $995 billion in 2026, from $266 billion in 2021, according to Juniper Research.
This will be fuelled by a greater appetite from users for credit to spread costs, particularly in the wake of the coronavirus pandemic.
At the same time, however, there has been increasing political and regulatory scrutiny of BNPL companies in recent times, based around concerns that they tempt consumers to purchase goods they cannot afford.
As a result, Clearpay has launched a Pay Better initiative and it is not the only charm offensive in town.
Klarna, for instance, has been taking aim at traditional banks and credit card companies with a UK campaign titled #WhyPayInterest.
Running across OOH, online, on social media and in print, this aims to highlight the difference between BNPL products and traditional credit cards, challenging what Klarna calls “outdated business models and products that don’t serve consumers’ best interests”.
