Clearpay reaches 1m UK shoppers
Clearpay, the buy now pay later interest-free platform, has revealed it has now topped 1m active shoppers in the UK in its first year in the market, with the likes of ASOS, M&S, Anthropologie, JD Sports, Urban Outfitters and Boohoo all using the service.
The notable rapid growth is the result of more than 1,000 brands and retailers offering Clearpay to their customers, and new data has revealed that UK customers have been retained at a high rate, purchasing more than eight times within the first year, compared to the US which was at five times during its first year.
During the COVID-19 period, Clearpay has seen a strong customer adoption rate suggesting that regardless of lockdown there was still a desire for a "treat", made affordable through the Clearpay 4-payment service.
In May 2020, Clearpay had more than 3m app and site visits, and Clearpay’s "Shop Directory" and website search bar contributed over 1.5m click-throughs to its retail partners, without which the retailer sales may not have transpired in such high quantities.
Co-founder of Clearpay, Nick Molnar, says: “The world and the industry are changing at a rapid pace and, during this challenging time, consumers are looking for ways to pay using their own money - instead of turning to expensive loans with interest, fees or revolving debt.
“We applaud our UK merchants who support the payment needs of British shoppers - especially as we head into a ‘new normal’ for retail.”
Consumer insights on how UK Clearpay consumers have been shopping over the past 90 days has revealed that key growth categories have included beauty and cosmetics, home and fitness products.
Top selling items during the COVID-19 pandemic have been sneakers with Nike winning hands down with its Air Force 1, Air Max 90 and VaporMax Flyknit models.
Clearpay, which is part of the Afterpay Group, allows merchants to give shoppers the ability to receive products immediately and pay in four instalments over a short space of time. The service is free and interest-free for customers who pay on time.
More than 95% of Clearpay orders are made with debit cards and, on average, merchants see customer conversion rates increase by over 20% and average order values increase by over 25% compared to all other payment methods.
As at 31 March 2020, Afterpay is offered by more than 48,400 of the world’s best retailers and is used by more than 8.4m active customers globally, with the US, Australia and New Zealand key markets outside of the UK’s Clearpay company arm.