At Clearpay, our vision is fairness and financial freedom for all

About Clearpay

Clearpay provides a budgeting tool that enables customers to use a modern day instalment payment service to buy products on a ‘buy now, receive now, pay later basis’.

These are four interest free instalments that offer customers the flexibility to manage their finances without falling into a spiral of debt.

Our innovative platform is fulfilling consumer demand, with the growing trend of young people who are cautious of debt cycles, moving away from traditional credit.

This is made possible by charging a small fee to merchants, whilst keeping the service free for customers when they pay on time.

Clearpay has become an ideal solution for those looking for a safe way to pay, without needing to consider revolving debt or interest-bearing products.

How it works

Clearpay is free for customers who pay on time

When customers use Clearpay there is never any interest or extra charges as long as they pay on time. Customers choosing Clearpay pay in four instalments over six weeks, with the first payment being required upfront.

We’re committed to responsible spending

Clearpay sets sensible spending limits that increase gradually over time. We take time to get to know our customers before enabling them to spend more. We assess every order to determine a customer’s spending ability and do not offer an open line of credit.

We empower customers with flexibility

Customers can reschedule three payment dates per year, shifting them up to five days with each update. They can also pay off some or all of an outstanding balance ahead of a scheduled payment, as well as check their spend limit on our app and website. This keeps customers in control and our product simple, honest and transparent.

Late payments are bad business

We only charge a late fee if customers miss a payment. But first, we will do everything we can to help customers avoid this, including sending reminders leading up to the payment due date and an alert if a payment has failed. A late fee per missed payment of £6 is charged, with a further £6, seven days later if the payment has still not been paid. Late fees are capped at £36 or 25% of the full bill. Fees collected do not cover our losses.

Our consumer protections

Clearpay is built on a different business model which puts customers first. This includes:

  • Small, discrete transactions – assessment is made at every purchase (rather than a blank line of credit)
  • Short repayment cycles resulting in small outstanding values
  • Profit is generated from merchant fees – not customer fees
  • Customer accounts are suspended immediately if there is a missed payment
  • The product is interest-free and where late fees apply they are capped
  • Never harm a customer’s credit profile
  • Never enforce customer debt
  • A customer paying on time is better for our business than one paying late 
  • Increased limits only occur if there is positive repayment history
  • Industry leading low default rates and over 90% of global monthly transactions come from repeat customers

Our consumer insights

  • Since 2019, Clearpay’s usage among Gen-Zs (18-24 year olds) has steadily grown. In July 2021 alone, 14% of users were within this demographic. Millennials (25-40) accounted for over half of users¹
  • 67% of under 35s say they use products like Clearpay because it allows them to pay back without incurring interest or fees. 60% of under 35s agree that ‘ buy now pay later (BNPL) helps me to budget outgoings every month’²
  • Young people are using BNPL to make relatively low value purchases that are on average around £65³
  • According to a report by Bain & Co., if BNPL purchases over the past 12 months had been conducted using credit cards, customers would have paid approximately £103 million in interest fees⁴

Sources: 1. Millennials and Gen Z in the UK: Next Gen Index, May 2021. 2. BNPL Consumer Voices Report, PSB, June 2021. 3. Clearpay data. 4. Bain & Company Report, Buy Now Pay Later in the UK, Consumers Delight, Regulators Challenge, October 2021.

Supporting UK retailers

Clearpay is committed to facilitating growth in the retail sector by bringing together customers and merchants through our directory and platform, whilst boosting the UK economy as it navigates towards a post-pandemic recovery.

  • We have supported businesses that have had to move online during the pandemic to bring increased traffic to their websites
  • More than 6,000 small and large UK retailers integrate with our shopping platform
  • 97% of our partnerships are with small and medium size businesses

Future outlook

Clearpay recognises the need for proportionate regulation that is appropriate to the consumer risk. It is essential that this is driven by good customer outcomes and ‘future proofs’ the UK’s regulatory environment for further growth and innovation. 

Clearpay is different to traditional forms of credit. Our business model is based on inbuilt consumer protections powered by smart technology and data analysis. We want to see regulatory standards that strike the right balance between safeguarding customers, and stimulating choice and competition in the unsecured credit market.

With a new regulatory framework in development, Clearpay is calling for:

  • Acknowledgment that BNPL products are not fixed sum or running account credit and therefore a new definition of consumer credit should be created to support the development of a suitable regulatory regime for the sector
  • Appropriate regulatory rules that provide a robust and flexible framework that can withstand future growth in the industry
  • A dynamic and digital approach to affordability assessment, that reinforces responsible lending practices, recognises inbuilt consumer protections, and helps customers to use positive repayment behaviour to benefit their credit scores
  • High standards for hardship across the BNPL industry to ensure that customers who need additional support can rely on a consistent approach from all regulated providers
  • Access to the Financial Ombudsman Service to provide additional peace of mind for consumers