Laybuy, New Zealand’s largest buy now, pay later service, officially launches in the UK today with Footasylum confirmed as its first major retail partner. Footasylum is a UK-based fashion retailer focusing on the branded footwear and apparel markets.
Having been built on decades of retail expertise, Laybuy provides a solution to retailers’ margin squeezing promotional crisis by allowing consumers to spread the cost of purchases over six interest-free payments, with the first being made at the point of sale.
The partnership will see the option to pay by Laybuy made available to Footasylum customers on its online store from today, with the in-store payment option being launched in Footasylum’s 70 UK high street stores later this year.
Gary Rohloff, co-founder and managing director of Laybuy said, “We’re incredibly excited to be partnering with Footasylum to bring Laybuy to UK shoppers.
“The UK retail sector is experiencing unprecedented challenges as retailers attempt to navigate troubled waters. By providing retailers with a genuine alternative to discounts and promotions, Laybuy can not only help drive sales, but also significantly boost new customer acquisitions.
Clare Nesbitt, CEO at Footasylum said, “Laybuy’s proposition represents a unique offering for our customer base. We believe that by providing customers with a means of paying for our products over time as part of their weekly budgeting, this partnership will be a positive step forward for us.
“Laybuy’s track record speaks for itself and we’re delighted to be the first major UK retailer to offer it as a payment option.”
Despite launching in New Zealand under two years ago, 8% of the country’s voting population (375,000 people) has already signed up to Laybuy’s platform and over 3,750 online and physical store partnerships have been forged.
Though the company has been successfully onboarding merchants in the UK online and in-store since October 2018, Footasylum is the first major retailer to appear on Laybuy’s books.
On average, retailers partnering with Laybuy have seen an increase in order value of 60%, an increase in online and in-store conversion rates of 50% and an increase in new customer acquisitions of 30%.
Not only does Laybuy absorb all credit risk on any transaction, totally safeguarding its retail partners, but it also handles all foreign exchange fees on a retailer’s behalf due to its multinational capabilities.
Upon completing an Experian credit check, subject to their score, Footasylum shoppers are allocated a spending limit of between £60 and £720. Purchases can then be made up to the value of that limit and should users wish to exceed that, the difference can be paid in cash.
The platform’s standard maximum credit limit and the thorough credit check have been put in place to ensure its responsible use. As part of Laybuy’s commitment to protecting shoppers from self-imposed debt, users who fall behind on their payment schedule will see their accounts immediately frozen.
Andy Marshall, managing director of Go To Market at Experian said, “We’re committed to helping people access products and services in an affordable way, it’s why we’ve partnered with Laybuy to provide credit checks on its users around the world.
“Laybuy’s innovative solution provides young people with a responsible, affordable way to buy the products they want. This payment option will be particularly helpful for people who find it difficult to access mainstream financial services, allowing them to strengthen their credit histories as they make repayments.”