Clearpay is a hassle-free payment solution that lets you buy now and pay later in four equal installments. Wondering how Clearpay works? It’s simple! In this article, we’ll break it down for you. Clearpay partners with various stores, allowing you to shop online or in-person and defer your payment. We’ll explain the process, highlight its benefits, and discuss costs and safety.
What Is Clearpay?
Clearpay is a popular Buy Now Pay Later (BNPL) payment service that enables shoppers to make purchases and split the total cost into four equal automatic installments. Users can shop online or in stores, select Clearpay as their payment method, and provide payment details.
The first payment is due immediately, with the remaining three automatically deducted every two weeks. Clearpay is free to use as long as payments are made on time, and it doesn’t charge interest.
How Does ClearPay Work?
Eligibility and Retailer Selection
- To use Clearpay, you must be at least 18 years old.
- Shop with a retailer that accepts Clearpay as a payment method. Many online and physical stores offer Clearpay as an option.
Adding Items to Your Cart
- Once you’ve found the items you want to purchase from the retailer, add them to your shopping cart or basket.
Checkout Process
- Proceed to the checkout page of the retailer’s website or physical store to initiate the payment process.
Select Clearpay as Your Payment Option
- During the checkout process, you will be presented with various payment options. Choose Clearpay as your preferred payment method. It’s typically listed alongside other payment options.
Account Creation
- If you are a first-time Clearpay user, you must create an account. Follow the on-screen prompts to set up your Clearpay account.
Link a Payment Method
- To complete your Clearpay account setup, you’ll need to link a payment method. You can choose to link either a debit card or credit card to your Clearpay account. This linked payment method will be used to make your Clearpay payments.
Immediate Outcome
- After confirming your details and payment method, Clearpay will assess your eligibility. You will receive an immediate outcome regarding your approval status.
First Payment
- If your Clearpay account is approved, Clearpay will initiate the first payment. Typically, this first payment is 25% of the total purchase price.
Shipping or Pickup
- Once the first payment is processed at checkout, your order will be shipped to your specified address or made available for immediate pickup if you’re shopping in a physical store.
Payment Notifications
- Clearpay provides notifications before each upcoming payment. These notifications help ensure sufficient funds are available in your nominated bank account or credit card to cover the automatic deductions.
Features Of Clearpay
No Fees
One of the features of Clearpay is that it is free to use, provided you make your payments on time. Unlike traditional credit cards or financing options, Clearpay doesn’t charge any fees upfront or hidden charges.
No Interest
Clearpay does not impose any interest on your shopping purchases. This means that when you split your payment into four equal installments, you won’t pay a cent more than the original purchase price, as long as you meet your payment deadlines.
Fixed Repayments
Clearpay simplifies budgeting by offering a single type of payment plan. Regardless of your purchase amount, you’ll have the same four-payment structure. This consistency ensures that you can easily plan and manage your finances.
Automatic Payments
Managing payment due dates can be a hassle, but Clearpay takes care of this for you. Once you’ve set up your account and linked your payment method, the system automatically deducts the remaining three payments from your bank account or credit card every two weeks. This feature eliminates the risk of missing payments.
Easy to Manage
Clearpay’s straightforward process makes it user-friendly. You don’t need to navigate complex terms or understand intricate financing arrangements. You simply make your purchase, and Clearpay handles the rest, providing a clear payment schedule.
Orders are Processed Right Away
Clearpay acts as a bridge between you and the retailer. When you make a purchase, Clearpay pays the full amount to the retailer upfront, allowing your order to be processed immediately. This means you can enjoy your new items without waiting for the full payment to be completed.
Is Clearpay safe to use?
Yes, Clearpay is safe to use. Clearpay, operated by Clearpay Finance Ltd, is a reputable Buy Now Pay Later (BNPL) service that takes several measures to ensure the security and privacy of its users. Here are some reasons why Clearpay is considered a safe payment option:
Clearpay is a member of the Afterpay Touch Group and adheres to the Payment Card Industry Data Security Standard (PCI DSS) Level 1 certification. This certification ensures Clearpay follows stringent security standards to protect users’ card information and personal data.
When you purchase with Clearpay, your payment information is encrypted and securely transmitted, making it difficult for unauthorized parties to access your data during the transaction. They also partner with many well-known and reputable retailers. Shopping with recognized brands adds a layer of trust and security to your purchases.
Clearpay requires users to create accounts and link their payment methods, which can help prevent unauthorized use of the service. They provide users with notifications before upcoming payments, helping to ensure that you are aware of and can plan for your financial obligations.
Clearpay Vs Klarna
Payment Options
Clearpay
Clearpay typically offers a single payment option where you can split your purchase into four equal installments. This option does not involve interest charges.
Klarna
Klarna offers multiple payment options, including Pay in 30 days (you have 30 days to pay in full), financing with monthly payments (with interest rates up to 18.9% APR), and Pay in 3 (splitting the purchase cost into three equal payments with no interest).
Credit Checks
Clearpay
Clearpay does not conduct a credit check or consider your credit score when assessing your eligibility for its service. Instead, it may conduct a pre-authorization on your selected payment method.
Klarna
Klarna typically conducts a soft credit check on your profile to assess your affordability for some of its payment options, such as Pay in 30 and Pay in 3. This check may impact your credit score.
Late Fees
Clearpay
Clearpay may charge late fees for missed payments. The late fee for orders under £24 is capped at £6, and for orders over £24, late fees are applied if payments are not completed within a specified time frame.
Klarna
Klarna does not charge late fees for its Pay in 30 and Pay in 3 options. Instead, it may attempt to collect the payment multiple times, and if unsuccessful, it may involve a debt collection agency.
Spending Limits
Clearpay
Clearpay may set spending limits on individual transactions based on factors like your account history and creditworthiness.
Klarna
Klarna also sets spending limits on its transactions, and these limits can vary based on similar factors.
Number of Payments
Clearpay
Clearpay divides payments into four equal installments, with the first due at the time of purchase.
Klarna
Klarna offers more flexibility with options like Pay in 30 days, financing with monthly payments, and Pay in 3.
Frequently Asked Questions
What if I’m late with payments?
If you’re late with Clearpay payments, the service will suspend you from making further transactions. For orders under £24, a maximum late fee of £6 applies. For orders over £24, you’ll have until 11 p.m. the next day to complete the payment. Failure to do so will result in a £6 late fee. If the payment remains unpaid for seven days, an additional £6 fee is charged. Late fees are capped at 25% of the order value or £36, whichever is lower, for orders over £24.
When will my items be delivered if I use Clearpay?
When you use Clearpay to make a purchase, your items will typically be delivered or made available for pickup immediately after the first payment is successfully processed at checkout. Clearpay pays the retailer the full amount upfront, so your order is on time. This means you can enjoy your purchased items without waiting to complete the entire payment plan.
Is Clearpay a credit card?
No, Clearpay is not a credit card. It is a Buy Now Pay Later (BNPL) payment service that allows you to split your purchase into four equal installments without the need for a traditional credit card. Clearpay does not charge interest on your purchases.
Are there late fees with Clearpay?
Yes, Clearpay may charge late fees if you miss payments or do not have sufficient funds in your linked account. Late fees are capped and vary depending on the order amount.
Can I use Clearpay with Apple Pay or Google Pay?
Yes, if you download the Clearpay app, you can set up your Clearpay account to work with Apple Pay or Google Pay for contactless payments at the checkout when shopping in physical stores.
Conclusion
Clearpay is a straightforward and user-friendly payment solution that allows you to buy now and pay later, conveniently splitting your payments into four equal installments. With Clearpay, you can shop online or in physical stores and defer your payment without incurring interest or upfront fees.
We’ve walked you through how Clearpay works, from eligibility and retailer selection to the payment process and the benefits it offers. Clearpay’s key features, such as no fees, no interest, fixed repayments, automatic payments, and immediate order processing, make it an attractive choice for budget-conscious shoppers. When it comes to safety, Clearpay prioritizes the security of your financial information and transactions, giving you peace of mind while making purchases.