JD Sports-owned retailers have been incentivising customers to checkout with buy now, pay later (BNPL) schemes at checkout, according to consumer group Which?.
Size?, JD Sports and Tessuti have all offered promotions over the past 12 months whereby consumers are offered free delivery if they pay with a BNPL scheme at the checkout.
A large banner was placed on the JD Sports homepage in September last year which offered free express delivery to those paying with BNPL firm Laybuy.
Three months later, it also offered free express delivery to those who paid with Klarna.
Fashion retailer Tessuti, also owned by JD Sports, ran a similar promotion for free standard delivery when paying with Klarna.
Footwear retailer, Size?, offered free delivery to those who paid with Clearpay back in June 2021.
Which? made a point of acknowledging the risks involved when paying with BNPL schemes, saying: “While avoiding delivery fees might sound appealing, it’s important to understand the risks of taking out credit before using a BNPL scheme – missed repayments can lead to late fees, marked credit scores and you could even be referred to a debt collection agency.”
If a customer misses a payment from either Clearpay or Laybuy, a £6 late payment fee is automatically charged.
Late fees from Laybuy and Clearpay, for example, cost an initial £6 – which is likely to be more than the cost of standard delivery to begin with.