Buy Now Pay Later (BNPL) payment options continue to gain significant traction amongst consumers. BNPL services allow customers to make purchases and pay for them in instalments, typically interest-free or with low fees. The flexibility offered by BNPL appeals to many consumers, especially millennials and younger demographics, who are looking for alternative payment methods that align with their financial preferences. This demographic is also a major consumer group in the fashion market
Recent data indicates an increasing adoption of BNPL schemes. In the UK, figures from March 2023 showed that BNPL was used in 14 percent of all online purchases, marking a notable increase from 12 percent in January 2023. The fashion industry has been one of the early adopters and major beneficiaries of BNPL services, which can be integrated seamlessly into online fashion retailers' checkout processes.
Clearpay, a BNPL service provider, recently announced it is has expanded its partnerships with new retailers including Tom Ford, Jo Malone, Cosmetic Company Stores, Le Labo, Too Faced, and URBN (owners of Urban Outfitters, Anthropologie, and Free People).
Clearpay's UK Country Manager, Rich Bayer, expects the popularity of BNPL to continue growing. The company sends one million customers to merchants daily and aims to help retailers expand their businesses.
Clearpay said it not only serves as a payment provider but also provides increased brand visibility, conversion rates, and higher average order values for its retail partners. Clearpay Day, a recent shopping event, witnessed a 31 percent increase in customers referred to merchants via Clearpay's Shop Directory. Key highlights include a 33 percent average uplift in merchant sales, a 38 percent average increase in new customers using Clearpay, a 63 percent increase in daily average sales in the "home" vertical, and over 90 percent of customers shopping via mobile devices. 96 percent of transactions were made by debit card, showcasing the use of Clearpay as a budgeting tool.