Marks & Spencer has introduced an instalment payment service through a FinTech partnership.
In Brief:
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The new system allows online shoppers to pay for purchases over a number of instalments.
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This has been achieved through a partnership with Clearpay.
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The option will be rolled out across the UK in a few weeks’ time.
What does this mean?
FinTechs offering customers the option to pay for online shopping in instalments have seen success, most notably Snoop Dogg-backed Klarna. ‘Buy now, pay later’ has been common on certain goods for a long time but is becoming more popular on the likes of fast fashion with the millennial market. However many are worried that this will encourage people to buy products they cannot afford and may lead to debt. M&S’ new system will be interest free for six weeks, after which point interest will kick in.
