Klarna challenger launches in UK

New Zealand’s largest buy now, pay later service says it is taking on the Swedish fintech giant with a partnership with Footasylum.

Laybuy, New Zealand’s largest buy now, pay later service, has launched in the UK today with Footasylum its first major retail partner.

In a manner similar to Klarna, Laybuy offers consumers to spread the cost of purchases over six interest-free payments, with the first being made at the point of sale. Footasylum is a UK-based fashion retailer focusing on the branded footwear and apparel markets

Upon completing an Experian credit check, subject to their score, Footasylum shoppers are allocated a spending limit of between £60 and £720. Laybuy absorbs all credit risk on any transaction.

It says retailers partnering with Laybuy have seen an average increase in order value of 60 per cent, an increase in online and in-store conversion rates of 50 per cent and an increase in new customer acquisitions of 30 per cent.

Initially Laybuy will allow Footasylum customers to use its service at the retailer’s online store with in-store payment option launching in Footasylum’s 70 UK high street stores later this year.

Laybuy claims to have 8 per cent (375,000 people) of the New Zealand adult market signed up to its platform in the less than two years since it launched and over 3,750 online and physical store partnerships. Though the company has been successfully onboarding merchants in the UK online and in-store since October 2018, Footasylum is the first major retailer to appear on Laybuy’s books.

“We’re incredibly excited to be partnering with Footasylum to bring Laybuy to UK shoppers”, said Gary Rohloff, Co-Founder and Managing Director, Laybuy. “The UK retail sector is experiencing unprecedented challenges as retailers attempt to navigate troubled waters. By providing retailers with a genuine alternative to discounts and promotions, Laybuy can not only help drive sales, but also significantly boost new customer acquisitions.