John Lewis has launched its own delayed payment scheme offering customers interest free credit of up to £35,000.
The department store has partnered with financial giant BNP Paribas to launch the payment option, which will allow them to pay back their credit by direct debit in staggered installments.
Unlike other delayed payment services however, customers will need to spend a minimum of £1000 and up to a maximum of £35,000 before repaying the sum over a 12-month period.
Customers can apply for the interest free credit of up to £25,000 to purchase home, garden, nursery, furniture and lighting goods from John Lewis’ website.
The online-only service will also offer customers up to £35,000 credit for fitted rooms.
Shoppers will need to undergo a credit application process in order to qualify for the buy now, pay later scheme, and will be required to supply valid identification in order to be accepted.
“We’ve recently launched a new interest free credit offer with BNP Paribas,” John Lewis told Charged.
“For the first time ever, customers can apply for interest free credit online and through our contact centres, as well as in our John Lewis Shops. As part of the offer, they will have access to credit for even more products and greater visibility of their account online.”
For a £1000 purchase customers can expect to pay back £83 over 12 months and “won’t be charged any interest or additional fees as long as all repayments are kept up to date”.
It comes as buy now, pay later services have skyrocketed in popularity during lockdown.
Earlier this month Swedish delayed payments giant Klarna raised a further $1 billion in a fresh funding round at a valuation of $31 billion.
This astronomical valuation is three times the $10.65 billion valuation it received during its last funding round in September, despite growing calls for regulation of the industry.
In September, Klarna said that the coronavirus crisis it had driven a 36 per cent rise in year-on-year revenue for the first half of 2020, up to $466 million.