Klarna
Vendors
Credit
Sales
Channel
Soft credit search and internal credit scoring system for all purchases
Embedded
online
checkout
Clearpay
LayBuy
Openpay
Zip
PayPal
(Pay in 3 and Pay After Delivery)
App to
discover
brands
In-app virtual
card (use
BNPL with
any merchant
online)
In-store
checkout
with partnered
merchants
Vendors
Credit
Sales
Channel
Credit approval
mechanism
Repayment options
Late repayment
fees
Late repayments can affect credit score
No external credit search and internal credit scoring system for all purchases
Hard credit search on first purchase, internal credit scoring system for all purchases
Hard credit search on first purchase, internal credit scoring system for all purchases
Soft credit search and internal credit scoring system for all purchases
Soft credit search and internal credit scoring system for all purchases
Pay in 30 days
or 3 monthly installments
(first one upfront)
4 fortnightly installments (first one upfront)
6 weekly installments
(first one upfront)
2–6 monthly installments
(first one upfront)
4 fortnightly installments (first one upfront)
Pay in 14 days
or 3 monthly installments
(first one upfront)
None
£6 late fee for orders <£25; repeated £6 late fees for orders >£25 (max. 25% of purchase)
£6 late fee can be charged twice on each installment
(max. £24 per purchase)
£7.50 late fee can be charged twice on an installment
(max. £15 per purchase)
£6 late fee
per missed payment
(max. £18 per purchase)
£6 late fee can be charged twice on each purchase
(max. £24 per purchase)
No
No
Yes
No
Yes
Yes
Vendors
Credit
Sales
Channel
Largest verticals
Large merchant partners
Clothing and shoes, home and garden
Clothing and shoes, health and beauty
Clothing and shoes, health and beauty
Home and garden,
clothing and shoes
Clothing and shoes, hardware
-
H&M, Nike, Expedia, Halfords
JD Group, Boohoo,
ASOS, M&S
JD Group,
The Hut Group, Boohoo
JD Group, Snug, Monsoon, Bedsonline
ShopTo,
Boinclo, hype, Never Fully Dressed
Most merchants that have the normal PayPal checkout option
Notes: UK information only, companies may have other policies in other countries; Clearpay in-store checkout soon to be released in the UK; Klarna does not share late repayments on its BNPL products, but it does for Klarna Financing; OpenPay plans to launch in-store checkout later in 2021. For Paypal, there are cases where a soft search is not necessary
Sources: BNPL merchants; FAQs from Klarna, Clearpay, Laybuy, Openpay, Zip, and PayPal; Which.co.uk
Figure 5
Comparing the largest buy now, pay later providers in the UK and their services