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The Hut Group completes Clearpay buy now, pay later integration

Multi-brand online retail organisation The Hut Group (THG) has announced the extension of its buy now, pay later partnership with Clearpay, replacing a tie-up it had with Klarna in the UK and US.

THG and Clearpay started working together in October 2019, but the new payments partnership is now active across all THG websites in the US and UK, including MyProtein and Lookfantastic.

THG said the move had enhanced its customer experience offering, as well as the payment options it provides consumers. Consumers who choose to purchase with Clearpay can spread their payments over four interest-free instalments.

Clearpay is part of the Afterpay Touch Group, and the technology has been integrated into THG Ingenuity – the retail group’s internally-built technology platform which is used to power its own online brands and some third parties. THG said it made the move to work with Clearpay, last year, to cater for evolving buying behaviours, particularly among millennials, many of whom want an alternative to traditional credit.

Matthew Moulding, founder and CEO of THG, commented: “Our strengthened partnership with Clearpay reflects our commitment to collaborating with businesses that share our ambition to offer best-in-class customer experiences.

“This will also further enhance our Ingenuity platform and provide greater freedom for our customers to make purchases on terms to suit them.”

Clearpay is one of several buy now, pay later providers growing its presence in the UK market, with rivals including Klarna, Laybuy, and Openpay. Each have their own unique proposition, but give users a chance to split payments over a period of time.

Any Clearpay user who misses a payment will immediately be stopped from making any further purchases through that method. In the event of a defaulted payment, Clearpay gives the customer until 11pm the following day to make the repayment otherwise they will incur a fee of £6 and a further fee of the same amount if the payment is not made within seven days.

The buy now, pay later provider says late fees are capped, and promises they will never go higher than 25% of the price of the item purchased.

Meanwhile, in response to THG's move to remove Klarna from its UK sites, Luke Griffiths, general manager at Klarna UK, said the two companies are still working together across 29 THG brands in seven different countries.

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