Clearpay is a payment service operated by Clearpay Finance Ltd, which is similar to Afterpay in Australia in that it allows customers to make immediate payments followed by four recurring fortnightly repayments.
Clearpay is one of the most downloaded BNPL (Buy Now Pay Later) apps, with over a million downloads on Google Play and an App Store ranking of #19 in the Shopping category.
It allows you to make a purchase on a predetermined amount of credit, with no interest, by dividing the cost of the purchase into four equal installments.
The features of Clearpay and the advantages of using it are discussed.
How does it work?
Clearpay has partnered with numerous major retailers to provide customers with the option of making instant in-store or online purchases without immediately settling their bills.
Clients can use Clearpay at the checkout of their favorite online store. After that, they register for or log into Clearpay using their chosen method of payment (data about their bank account or credit card).
The total price of your purchase will be split into four equal installments, the first of which is due immediately followed by three further payments taken out of your account every two weeks.
Here are a few of Clearpay’s many features:
- There are no hidden costs. If your payments are always on time, using Clearpay won’t cost you a dime.
- Absolutely zero motivation. Your online purchases using Clearpay will not accrue any interest charges.
- Telegraphic transfers are used to make payments automatically. The subsequent three payments will be deducted from your bank account by Clearpay without any more action on your part (one every two weeks).
- A breeze to keep under control. Use Clearpay to divide a single purchase into four manageable chunks.
- All orders are handled immediately. With Clearpay, the merchant receives the entire purchase price before processing your transaction, and you receive your goods without delay.
Paybacks that are set in stone
Clearpay only offers a single payment option, unlike Klarna and a few other BNPL providers. It may be claimed that if everyone adheres to the same rules, it simplifies things for the user.
Clearpay does not offer a “try before you buy” feature as Klarna offers, and there’s no getting around that. This is because the purchase price of your goods is split into four equal installments using the Clearpay payment option, the first of which is collected at the moment of purchase.
Your bank account will be debited until you confirm whether or not you want to keep your new purchase (even if you will get your money back if you return the item).
Recurring debits
With Clearpay, clients never have to worry about forgetting a payment or missing a deadline because payments are processed automatically.
You must, however, ensure that there is sufficient money in the associated account to meet the costs. Unlike Klarna, Clearpay charges a £6 late fee the first time a payment is late, and a further £6 if the payment is still outstanding after seven days.
If you want to use Clearpay for your transactions, you should be aware of this.
Simple-to-use Application
If you use Clearpay frequently, you may want to download the app (available for iOS and Android devices) for more convenience. When you shop at one of the many online stores that use Clearpay, you’ll have access to convenient payment tools, a detailed view of your upcoming bill, and much more.
You can also make early payments if you have the funds and would like to complete your repayment plan sooner.
What is Clearpay’s pricing structure?
You won’t have to worry about paying any hidden fees or interest by using Clearpay. You will only be charged a fee if there is not enough money in your account to cover the scheduled installments. If this happens, you’ll incur a late fee and be required to make a payment using your Clearpay account.
Is it secure?
Clearpay is part of the Afterpay Touch Group, which has achieved Level 1 certification under the PCI DSS (Payment Card Industry Data Security Standard). Clearpay guarantees the safety of your credit card data and other personal details at all times.
Summary
In the United Kingdom, Clearpay is among the most well-known BNPL systems. The payment gateway is intuitive, easy to set up, and maintain, and it comes with a number of helpful features.
Only two primary drawbacks can be found. At the outset, there are fewer payment plan options than with Klarna’s three possibilities, and clients can’t “try before they purchase,” at least not without paying the initial installment.
Second, many customers will likely opt for Klarna instead of Clearpay because there are no late penalties with Klarna.