A new ‘buy now, pay later’ service has launched in the UK after partnering with fashion retailer Footasylum.
New Zealand-based Laybuy provides a solution to retailers’ margin squeezing promotional crisis by allowing consumers to spread the cost of purchases over six interest-free payments, with the first being made at the point of sale.
The partnership will see the option to pay by Laybuy made available to Footasylum customers on its online store from today, with the in-store payment option being launched in Footasylum’s 70 UK high street stores later this year.
“We’re incredibly excited to be partnering with Footasylum to bring Laybuy to UK shoppers,” said Gary Rohloff, co-founder and managing director at Laybuy.
“The UK retail sector is experiencing unprecedented challenges as retailers attempt to navigate troubled waters.
“By providing retailers with a genuine alternative to discounts and promotions, Laybuy can not only help drive sales, but also significantly boost new customer acquisitions.”
Footasylum CEO Clare Nesbitt said: “Laybuy’s proposition represents a unique offering for our customer base.
“We believe that by providing customers with a means of paying for our products over time as part of their weekly budgeting, this partnership will be a positive step forward for us.
“Laybuy’s track record speaks for itself and we’re delighted to be the first major UK retailer to offer it as a payment option.”
Despite launching in New Zealand less than two years ago, eight per cent of the country’s voting population – 375,000 people – have already signed up to Laybuy’s platform and over 3,750 online and physical store partnerships have been forged.
Though the company has been successfully onboarding merchants in the UK online and in-store since October 2018, Footasylum is the first major retailer to appear on Laybuy’s books.
On average, retailers partnering with Laybuy have seen an increase in order value of 60 per cent, an increase in online and in-store conversion rates of 50 per cent and an increase in new customer acquisitions of 30 per cent.
Laybuy absorbs all credit risk on any transaction, safeguarding its retail partners, and also handles all foreign exchange fees on a retailer’s behalf due to its multinational capabilities.
Upon completing an Experian credit check, subject to their score, Footasylum shoppers are allocated a spending limit of between £60 and £720. Purchases can then be made up to the value of that limit and should users wish to exceed that, the difference can be paid in cash.
The platform’s standard maximum credit limit and the thorough credit check have been put in place to ensure its responsible use.
As part of Laybuy’s commitment to protecting shoppers from self-imposed debt, users who fall behind on their payment schedule will see their accounts immediately frozen.
Andy Marshall, MD of Go To Market at Experian, said: “We’re committed to helping people access products and services in an affordable way – it’s why we’ve partnered with Laybuy to provide credit checks on its users around the world.
“Laybuy’s innovative solution provides young people with a responsible, affordable way to buy the products they want.
“This payment option will be particularly helpful for people who find it difficult to access mainstream financial services, allowing them to strengthen their credit histories as they make repayments.”