Frasers Group, the retail conglomerate behind well-known brands like Flannels, Sports Direct, House of Fraser, and Jack Wills, is gearing up to introduce its own buy-now-pay-later (BNPL) application called Frasers Plus. This strategic move is expected to bring significant financial benefits to the company and give it an edge by operating within the regulatory framework set by the Financial Conduct Authority (FCA).
Frasers Plus will offer customers a comprehensive financial package, enabling them to borrow up to £2,000 and conveniently split or delay payments. Additionally, users will have the opportunity to make purchases across Frasers Group’s extensive portfolio of retail brands through the app. By introducing this initiative, the company aims to provide its customers with more flexibility and convenient payment options.
Under the Frasers Plus BNPL scheme, customers can enjoy interest-free installment plans starting from three months. Alternatively, they can choose longer periods of six, 12, 24, or 36 months, which will come with an interest rate of 29.9% APR. As an added bonus, customers will earn loyalty points for every £1 spent on the group’s financial products, with the aim of emulating the success of popular loyalty schemes such as Tesco’s Clubcard.
Frasers Group plans to leverage the technology developed by Tymit, a fintech start-up in which it holds a 28% stake, to facilitate seamless and user-friendly BNPL payments through the Frasers Plus app. Furthermore, the company intends to activate consumer loans through Studio Retail, an FCA-regulated firm it acquired following its bankruptcy last year.
CEO Michael Murray sees the regulatory oversight provided by the FCA as a crucial differentiating factor for Frasers Plus. As the BNPL sector faces increasing scrutiny and regulation, Frasers Group aims to position itself ahead of competitors like Klarna and Clearpay, which currently offer unregulated products. The company believes that the involvement of the FCA will instill greater confidence and protection for customers when using its BNPL service.
Overall, the launch of Frasers Plus is an exciting development for Frasers Group. By introducing its own BNPL app and financial package, the company is primed to enhance the customer experience and solidify its position in the retail market. With the backing of the FCA’s regulation, Frasers Plus seeks to provide shoppers with a secure and reliable payment option, setting itself apart from competitors.
Useful links:
– Financial Conduct Authority (FCA)
– Tymit (fintech start-up in which Frasers Group holds a 28% stake)
