Frasers Group is vying to take on Klarna with its ‘buy now, pay later’ product Frasers Plus, as it pitches some of the retailers it has acquired stakes in to start using the credit service.
The Mike Ashley-controlled retail group has spoken to retailers including Asos, Boohoo, Currys and AO, all of which it owns stakes in, to its credit offer as a payment option, according to The Sunday Times.
The newspaper reports that Frasers is close to announcing its first third-party tie-up, with Boohoo also thought to be seriously considering using the payment option.
Frasers has been developing its credit offer since its acquisition of Studio Retail, the credit-focused online retailer it snapped up out of administration in 2022.
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Frasers Plus, which is already live across the brands within the group including Sports Direct, House of Fraser, Flannels and Evans Cycles, allows shoppers to pay for products in three interest-free monthly installments. It carries a 29.9% APR.
Unlike Klarna, it is free for retailers and is regulated by the Financial Conduct Authority, which does not cover other buy now, pay later services.
However, some retailers that Frasers has sounded out are thought to hold concerns over handing customer data over to a competitor. The retail group’s credit push comes as buy now, pay later usage has surged during the pandemic.
According to Mintel, 17% of UK adults have used such a credit option in the last two years.
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