Claro targets Klarna et al with Bye Now Pay Later campaign
UK-based financial coaching app, Claro, is urging the British public to reduce their reliance on buy now, pay later schemes by launching a series of digital billboards in London, including London Bridge, Canary Wharf and Westminster.
An advertising van (pictured above) will also be visiting Oxford Street, the Asos head office, Boohoo London office, Klarna and ClearPay HQs.
BNPL is a booming space, with the likes of Klarna and Afterpay emerging as FinTech darlings, but also a controversial one.
The recent Woolard Review and subsequent Financial Conduct Authority (FCA) plans for regulation of BNPL schemes will result in changes being made to the sector.
However, according to Claro, their rapid rise over the pandemic means that reforms will be too late for many.
The aforementioned campaign features a series of statistics from Claro’s own research, created in partnership with Mental Health UK and The Money Charity.
These include: 41% of people have been living beyond their means at some point over the last 12 months; and 20% of households couldn’t last a month if they lost their main source of income, without needing to borrow money.
Rob Brockington, CEO at Claro, comments: “Unconsidered spending and an over reliance on unsecured financial products, such as BNPL schemes, can ruin people’s personal finances for years.”
“We want to reduce this reliance, and remind consumers that they have a choice in how they save, spend and invest their money.”
“Our ‘Bye Now Pay Later’ campaign is aiming to raise awareness of the benefits of better money management for everyone, regardless of their income, bank balance and social standing.”
Claro is encouraging the public to claim one of 1,000 free one to one personal finance coaching calls, where they can get help creating a financial plan and building sustainable financial habits.
It is also inviting BNPL providers and retailers to a meeting to explore ways of promoting considered spending among the public, and educating people on unsecured credit products.
It believes that there is a place for BNPL products in the market. However, these should be used occasionally, rather than relied on.
Brockington concludes: “There are parallels between the safe use of credit cards and BNPL products.”
“However, there isn’t currently the same level of awareness around the considered usage of BNPL products like there is with 0% interest credit cards and their strict no repayment fee terms.”
“We want consumers to approach BNPL schemes with the same caution they would when taking out a credit card, but building this awareness takes time.”
“We would like to see the FCA review and regulate the industry in the same way Sweden has done with the introduction of the e-commerce payments bill.”
