Frasers set to launch own-brand BNPL app - report
Frasers Group is understood to be rolling out its own buy-now-pay-later (BNPL) offer as part of an own-brand, standalone financial package scheme.
Called Frasers Plus, reports say that management expects it to be a major boost to the group’s earnings and to have an advantage in that it will be regulated by the Financial Conduct Authority. However, Frasers has yet to comment.
The BNPL scheme will allow shoppers to borrow up to £2,000 and be able to split and defer payments, or take a loan through the group’s app that can be spent across its wide-ranging portfolio of retail brands, which include Flannels, Sports Direct, House of Fraser and Jack Wills.
The payment plans start at three months, breaking purchases into three interest-free instalments. Periods of six, 12, 24 or 36 months are also available but will include interest at 29.9% APR.
Customers will also be rewarded with points, earning one point for every £1 spent when shopping with the group’s new financial products. The group is hoping it will replicate the success of other loyalty schemes, such as Tesco’s Clubcard, the report claims.
Consumer loans will be activated through Studio Retail, the FCA-regulated firm that Frasers bought out of bankruptcy last year, while technology created by fintech start-up Tymit, in which the retail group holds a 28% stake, will facilitate the BNPL payments.
CEO Michael Murray is reportedly hoping Frasers Plus will have an edge on competitors due to the oversight of the FCA, setting it aside from unregulated products offered by rival firms like Klarna and Clearpay. The sector is due to come under wider regulation this year.
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