Clearpay, known as Afterpay outside the UK, offers innovative payment solutions for both businesses and consumers. Simplifying the buying process, Clearpay has introduced a ‘buy now, pay later’ model that has garnered considerable attention in the retail sector.
This article delves deep into the workings of Clearpay, evaluating its services, cost implications, and how it compares with its competitors.
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Headline numbers
- Over 4.3 million active users in the UK
- Available at over 8,500 retailers across the UK
- Approximately 80% of transactions made by repeat customers
- Transactions totalling over £2 billion processed in 2021
Key information
| Feature | Data |
|---|---|
| Founded | 2014, Sydney, Australia |
| Website URL | www.clearpay.co.uk |
| Phone number | +34 910 783 844 |
| FSCS protected? | No |
| FCA regulated? | Yes |
Pros and cons of Clearpay
Pros:
- Increases conversion and basket value for retailers.
- Offers interest-free instalments for consumers.
- Simple and fast integration for online stores.
- No long-term contracts or upfront fees.
Cons:
- Some consumers might accrue debt if they aren’t careful.
- Not all retailers are eligible to partner.
- Potential for increased returns from consumers.
Clearpay products and services
Retail integration for online stores
- Description: Enables online retailers to integrate Clearpay, allowing their customers to pay in 4 instalments. Boosts online conversion by up to 30%.
- Costs and fees: 4-6% per transaction, with a 30p fee.
Clearpay app for consumers
- Description: An app that helps users track their instalments, find Clearpay retailers, and manage their account. Over 1 million downloads in the UK.
- Costs and fees: Free for consumers, but late fees apply if instalments aren’t paid on time.
Clearpay in-store solution
- Description: Physical retailers can offer Clearpay’s ‘buy now, pay later’ option at point of sale terminals. Customers can instantly create a barcode through their app for the transaction. Over 2,000 physical stores in the UK have adopted this solution.
- Costs and fees: Similar to online transactions, fees vary depending on the retailer’s volume.
Clearpay Marketing Platform
- Description: A platform for retailers to gain insights into customer preferences, behaviours, and trends. Also offers promotional materials and campaigns to push Clearpay as a preferred payment option. Retailers using this platform have seen up to a 50% increase in repeat customers.
- Costs and fees: Varies based on the scale of the promotional campaign and level of insights required.
Clearpay Payment Rescheduling
- Description: A feature that allows customers to reschedule their payments if they believe they might miss the upcoming one. This aids in reducing the number of late payments. Around 20% of Clearpay users have used this feature, leading to a decrease in late fees collected.
- Costs and fees: No additional costs for the retailers. A small rescheduling fee might apply for consumers.
Clearpay Gift Cards
- Description: Retailers can offer gift cards that recipients can use in any Clearpay-affiliated store. It’s a way to increase brand loyalty and incentivise customers. Gift card sales have seen an uplift of 25% in stores offering them.
- Costs and fees: Standard transaction fees apply, with possible discounts on bulk orders.
Clearpay Extensions and Plugins
- Description: Clearpay provides extensions for major e-commerce platforms like Shopify, Magento, WooCommerce, and BigCommerce. This ensures seamless integration and user experience. Over 5,000 UK-based online stores using popular platforms have integrated Clearpay.
- Costs and fees: No additional fees for using the extensions, standard transaction fees apply.
Clearpay reviews
| Source | Rating |
|---|---|
| TrustPilot | ★★★★☆ 4.5 |
| Google Reviews | ★★★★☆ 4.2 |
| Reviews.io | ★★★★☆ 4.3 |
| Average | ★★★★☆ 4.3 |
Alternatives to Clearpay
- Klarna
- Laybuy
- Affirm
- Zip (formerly Quadpay)
Additional considerations
While Clearpay offers numerous benefits, retailers need to consider their customer demographic and how ‘buy now, pay later’ solutions fit into their sales model.
Consumer responsibility and financial education are also vital to ensure the service is beneficial and doesn’t lead to increased financial burden.
Clearpay company history
Founded in 2014 in Sydney, Clearpay has expanded rapidly. First launching in Australia under the name Afterpay, it rebranded as Clearpay for its UK launch in 2018. Since then, it has seen immense growth and has become a household name in retail finance.
FAQ
No, there are no upfront setup fees.
Retailers must have an e-commerce platform, and certain financial thresholds need to be met.
Typically, integration can be completed within a few days, but this might vary based on your e-commerce platform.
Retailers are typically paid upfront, irrespective of the customer’s instalment status.
Yes, Clearpay conducts instant credit checks during the checkout process to determine eligibility.
Clearpay manages the collection process. Retailers are not affected by missed consumer payments.
No, Clearpay operates without binding retailers to long-term contracts.
Clearpay earns from merchant fees and also charges customers a late fee if they miss payments.
Yes, businesses can define thresholds for Clearpay as a payment method.
Yes, Clearpay offers solutions for both online and in-store transactions.
Returns are handled as they would be with any other payment method. Once processed, Clearpay is notified, and they adjust the customer’s payment schedule accordingly.
Absolutely. Clearpay provides promotional materials and can work with retailers on marketing campaigns.
Clearpay offers dedicated merchant support, including integration assistance and marketing advice.
Yes, Clearpay provides businesses with analytics and insights to better understand customer behaviour and preferences.
Clearpay is primarily tailored for the retail sector. It’s essential to consult with Clearpay directly for industry-specific queries.
Chargebacks and disputes are managed by Clearpay. In most cases, businesses are protected from any financial loss.
Currently, Clearpay is designed for domestic transactions, but it’s best to check with Clearpay for any updates on international services.
Clearpay uses advanced encryption and security protocols to ensure all data is protected.
Clearpay is designed to be lightweight and efficient, ensuring minimal impact on site performance.
Clearpay’s merchant portal provides detailed breakdowns of all associated costs and charges.
Remember, it’s always a good idea to refer directly to Clearpay’s official resources or contact their support team for any specific queries or concerns.