What: Frasers Group is introducing its own buy-now-pay-later (BNPL) offer as part of its own brand

Why it is important: The service is expected to boost the group’s earnings and will give the group an advantage as it’s regulated by the Financial Conduct Authority.

The service, Frasers Plus, will allow shoppers to borrow up to GBP 2,000, split and defer payments, or take a loan through the group’s app. Payment plans will start at three months with periods of six, 12, 24, or 36 months also available with interest.

Customers will also be able to earn reward points when they use the group’s financial products, with one point being rewarded for every GBP 1 spent.

Studio Retail, an FCA-regulated firm, that Frasers bought out of bankruptcy last year, will activate consumer loans and technology created by Tymit, in which the retail group holds a 28% stake, will facilitate the buy-now-pay-later payments.

Frasers set to launch own-brand BNPL app-report