Footasylum introduces buy now, pay later scheme

Footasylum will now offer its online customers credit, allowing them to buy now and pay later as it partners with Laybuy.

The footwear retailer has partnered with the New Zealand based payments provider Laybuy to launch its buy now, pay later service on its website, ahead of the roll out across its 70 UK stores later this year.

Customers will be required to complete an Experian credit check and will then be allocated a spending limit between £60 and £720.

They can then purchase goods up to their personal credit limit and spread the cost across six interest-free payments.

READ MORE: Rent-to-own retailers face price cap from April 1

However, the first of these six payments must be paid at the point of sale.

“We’re incredibly excited to be partnering with Footasylum to bring Laybuy to UK shoppers”, Laybuy’s co-founder Gary Rohloff said.

“The UK retail sector is experiencing unprecedented challenges as retailers attempt to navigate troubled waters. By providing retailers with a genuine alternative to discounts and promotions, Laybuy can not only help drive sales, but also significantly boost new customer acquisitions.

Retail credit schemes have come under increased scrutiny in the UK, after the FCA accused rent-to-buy retailers of targeting the most financially vulnerable.

The FCA said that among rent-to-own customers, only one third are employed, most are on low incomes of between £12,000 and £18,000, and are likely to have missed a bill payment in the last six months.

In response to findings that some rent-to-buy customers were paying up to four times the standard price for household goods, the FCA is set to introduce a new cap on credit charges as of April 1.

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