New Zealand-based buy now, pay later (BNPL) company Laybuy officially launched in the UK on Tuesday through a partnership with British streetwear retailer, Footasylum.
The partnership enables consumers in the UK to use Laybuy to pay for their online purchases in instalments. It is expected to expand to Footasylum’s 70 bricks-and-mortar stores later this year, according to a Bloomberg report.
Laybuy’s co-founder and managing director Gary Rohloff (pictured above, right) told Bloomberg the company has signed up about 100 other UK merchants. According to Finder, these merchants include eyewear brand Bailey Nelson and designer fashion brand Karen Walker.
Laybuy is also available in Australia, where it competes against the bigger BNPL providers, Afterpay and ZipPay. In August last year, Afterpay announced it was raising funds to finance the acquisition of British BNPL company, ClearPay, giving it a foothold in the UK market.
Sweden’s Klarna Bank AB and PayPal’s Credit product also enable British consumers to pay in instalments, but they do not operate in bricks-and-mortar stores, as Laybuy plans to do, and they charge interest, which Laybuy does not.
Like other BNPL products, such as Afterpay, Laybuy makes money by charging merchants a commission on each transaction. Many retailers have been willing to sacrifice a portion of their margin to BNPL providers, since they say the alternate payment methods boost order volumes and basket size – though some smaller retailers say the cost of BNPL has driven them out of business.
Rohloff told Bloomberg that Laybuy has 375,000 users in New Zealand and more than 3750 online and physical stores offering its payment method.