Homebase, Boohoo and The Fragrance Shop are among the first users of a buy now pay later provider that launches in the UK for the first time this week.
It’s the first time that Homebase will use the fast-growing payment type. Its partnership with Zip operates both online and in its stores.
Sydney-based Zip already has 5.7m users around the world. At launch in the UK this week, its partners include Boohoo, The Fragrance Shop and football clubs Crystal Palace and Celtic Football Club. Shoppers opting to pay with Zip will be able to pay in four interest-free instalments across sales channels.
Anthony Drury, Zip UK managing director says, “Zip will be one of the first to offer Buy Now, Pay Later both online and in-store in the UK providing the choice and flexibility that we know our UK customers want.
“Our global footprint means we have a leading technology and infrastructure to bring more products – already used by merchants and consumers in the US and Australia – to the UK in 2021. Our network also offers real growth opportunities for UK retailers to reach new customer markets.
“We’ve built a brilliant team of fintech and ecommerce experts in the UK and are recruiting at pace. We’re well positioned to drive our ambitious UK growth plans.”
Larry Diamond, Zip co-founder and chief executive, says, “We’ve created a transparent, flexible and fairer digital alternative to credit cards and our ambitious UK expansion is a significant milestone in our journey.
“We process $7.5 billion in payments every year across Australia, New Zealand and the United States which only demonstrates the appetite for new, digital and flexible ways to pay. We’ve invested in the UK with a long-term strategy and are excited about our offer as domestic and global retail and ecommerce develops.”
The UK buy now pay, later market has grown quickly over the last year. Shoppers used the service three times as often in 2020 as in 2019, according to the findings of the Woolard Review into the sector. The government said last month that the buy now pay later would soon be regulated by the Financial Conduct Authority, a move that was welcomed by existing providers including Klarna, ClearPay and Laybuy.
Zip, founded in 2013, is listed on the Australian Stock Exchange.
The Fragrance Shop and Boohoo are Top150 retailers in RXUK Top500 research, while Homebase is a Top250 retailer.