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IREU Top500 The Customer Report: 2018

IREU Top500 The Customer Report: 2018

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Pay4Later signs over 100 etailers in a year

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One of the first UK companies to facilitate online interest free credit says it has signed up over 100 etailers since launch last summer. Pay4Later’s credit application process is based around an e-signature and instant credit scoring and allows consumers to complete a financed purchase online in less than five minutes. E-commerce companies already offering the option to customers include Gym Company, Andertons, The Diamond Store, Demon Tweeks and Worldstores .


Offering interest free credit deals online has been problematic for etailers up until recently because of the slow nature of credit checking, reluctance of banks to take risk, and issue of the customer not being present. But better technology now enables faster, secure credit checking, and eliminates paperwork, says Pay4Later.

“Retailers are seeing healthy increases in sales and conversions, when they can offer the additional option to spread payments over time,” said Pay4Later managing director Scott Law. “Our own research shows that 93% of customers said finance was key to their purchase.” Average order values can improve dramatically, he said, with one retailer reporting over 300% increase on finance sales compared to credit/debit card orders.

Joe Murray, joint CEO of furniture specialist Worldstores.co.uk commented: "Our customers are asking for more payment options and on our higher value goods the demand for consumer credit is very high.” Karl Findlay, CFO at Gym Company said: “We're picking up incremental orders due to the simple fact that our customers can apply for finance online.”

Retailers are paid daily for each finance sale, minus the cost of any subsidies. For example - the retailer subsidy on a 6 months interest free credit offer starts at around 2.5%. Interest bearing deals don’t require a retailer subsidy as the customer pays a normal APR for their loan.
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