Competition Heats Up in the Buy Now, Pay Later Market

  • Frasers Group pitches Asos, Boohoo, and Currys to use its credit offer Frasers Plus
  • Frasers Plus allows shoppers to pay for products in three interest-free monthly installments with a 29.9% APR
  • The service is free for retailers and regulated by the Financial Conduct Authority
  • Usage of buy now, pay later services has surged during the pandemic

Frasers Group is looking to expand its ‘buy now, pay later’ service, Frasers Plus, by pitching it to retailers such as Asos, Boohoo, and Currys. The Mike Ashley-controlled retail group has already implemented the service across its own brands like Sports Direct, House of Fraser, Flannels, and Evans Cycles. Unlike competitors like Klarna, Frasers Plus is free for retailers and regulated by the Financial Conduct Authority. With 17% of UK adults using buy now, pay later services in the last two years, Frasers Group aims to capitalize on the growing trend.

Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about Frasers Group’s plans to introduce its ‘buy now, pay later’ product, Frasers Plus, to retailers it has stakes in. It also mentions the key features of the service and compares it with Klarna. However, there is a brief mention of Uber Eats at the end which seems unrelated and could be considered as a digression.
Noise Level: 4
Noise Justification: The article provides relevant information about Frasers Group’s attempt to compete with Klarna by offering its own ‘buy now, pay later’ product and highlights the differences between Frasers Plus and other services. However, it includes an unrelated mention of Uber Eats at the end which adds some noise.
Financial Relevance: Yes
Financial Markets Impacted: Retail industry, financial services
Financial Rating Justification: The article discusses Frasers Group’s attempt to enter the ‘buy now, pay later’ market with its product Frasers Plus and its potential impact on retailers like Asos, Boohoo, Currys, and AO. This can affect the financial operations of these companies and the overall retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailgazette.co.uk