UK retailers can finally satisfy the overlooked needs of one of their most valuable demographics, according to ClearPay.
ClearPay, a new digital payment solution with interest-free credit has been designed to meet the needs of UK millennials, and is now being launched following extensive consumer research.
The research highlighted that Millennials often feel conflicted between the desire to spend versus increasing pressures on disposable income and wariness towards traditional finance.
The proposition provides interest-free credit online and at the point of sale for purchases up to £450. Consumers can spread the cost of transactions in three equal interest free payments, where the first payment is made at the time of purchase followed by two monthly payments.
Up to eight in 10 millennials are keen to use the new way to pay, according to the research —with one in three saying they will spend more on a single transaction and return to shop more often.
ClearPay offers ‘plug and play’ integration with ecommerce platforms, with no FCA authorisation required for retailers
ClearPay is now accepting retailer registration for an initial release. The finance specialist is expecting significant demand from brands seeking to be first to market to offer consumers a new way to pay.
Gerald Grimes, CEO for ThinkSmart – the company behind ClearPay, said: “There’s a clear gap in retail payment for a digital solution with an interest-free payment option on transactions lower than £450. Responding to Millennials needs for a new way to pay offers retailers a new opportunity to increase conversion rates, purchase frequency and average order value.
“With a staggering 72% of Millennials claiming such a payment scheme would increase their propensity to purchase and a third claiming they would spend more frequently with the retailer who offered ClearPay – that’s a significant amount of sales potential!”
Ned Montarello, executive chairman for ThinkSmart, added: “Currently an underserved audience, Millennials are looking for a more flexible way to pay that is not currently offered within the UK retail finance landscape.
“Similar schemes offered in other countries have seen the emergence of a new mega trend with the uptake growing from zero to over a million users in a very short timeframe. Proving that the simpler the path to purchase is for Millennials, the more likely they are to repeat the process.”