Boohoo and Urban Outfitters are now offering customers the chance to pay in installments for free on their debit cards as they partner with Afterpay Touch Group.
The Australian digital payments provider, which was launched four years ago and offers interest free debit-by-installment services for over 30,000 merchants in the US, New Zealand and Australia, has launched in the UK for the first time.
Launching under the brand name Clearpay in the UK, Urban Outfitters, Anthropologie, Free People and Boohoo are set to launch the service across their stores and websites.
“The Clearpay platform is unlike anything on offer in the UK, offering people greater flexibility to budget and pay for goods and services,” Clearpay’s boss and ex-PayPal chief Carl Scheible said.
“By trusting consumers to repay free of charge, it turns accepted wisdom in financial services on its head.
“This is an interest-free way to stagger payments by debit, which rewards positive behaviour and is the opposite of a traditional credit product. Instead of making money by trapping people in accruing debt, Clearpay charges retailers a fee to provide the service and covers the cost of the purchase up front, removing the risk for the retailer.
“Retailers across the US and Australia tell us that using this service drives down their returns, typically by around 20 percent, and attracts new customers online.”
Clearpay is understood to be in “advanced discussions” with a raft of UK retailers, and already partners with the likes of Asos, Forever 21 and Steve Madden in Australia and the US.