🛍️ Frasers Group's New Credit Service
Frasers Group, controlled by Mike Ashley, is pushing its ‘buy now, pay later’ product, Frasers Plus, to retailers like Asos, Boohoo, Currys, and AO. Frasers Group owns stakes in these companies. The credit service offers payment in three interest-free monthly installments with a 29.9% APR. Unlike competitors, it is free for retailers and regulated by the Financial Conduct Authority.
🛒 Pitch to Major Retailers
According to The Sunday Times, Frasers is close to announcing its first third-party partnership, with Boohoo seriously considering the offer. The move aims to compete with established services like Klarna. Frasers has been developing Frasers Plus since acquiring Studio Retail, a credit-focused online retailer, in 2022.
📈 Increasing Buy Now, Pay Later Usage
The push for Frasers Plus comes amid a surge in ‘buy now, pay later’ services during the pandemic. Mintel reports that 17% of UK adults have used such a service in the last two years. This rise in usage highlights the growing demand for flexible payment options among consumers.
🔒 Concerns and Regulation
Some retailers approached by Frasers are concerned about sharing customer data with a competitor. Despite these concerns, Frasers Plus offers a competitive edge by being free for retailers and under the regulation of the Financial Conduct Authority, unlike other services. This regulation might alleviate some data security concerns and attract more retailers to the service.
Will retailers trust Frasers Plus with customer data?
