If you live somewhere outside of Europe, you may be familiar with Clearpay, which operates similarly to Afterpay in that it allows you to make interest-free payments Buy Now Pay Later over time for your online purchases. Clearpay, which began as Afterpay in Australia in 2014, expanded to Italy, France, and Spain at the same time in 2021. Canada and New Zealand are among the countries where we operate.
Despite the slow growth of Buy Now Pay Later (BNPL) in Italy and other European countries, Clearpay has over 2.5 million active clients, 7,000 European merchants, and $1.9 billion in gross merchandise value as of FY2021. Across Australia, North America, Asia, and EMEA, we have over 1,200 people serving our 19 million active customers and 1.4 million merchants.
Although BNPL is currently relatively unknown in Italy, a poll of 1,036 Italians who shop online performed in March 2022 in partnership with Human Highway found that 56.1% of those who are unfamiliar with the service are interested in learning more about it.
If you’re unfamiliar with Clearpay, how does it work?
Clearpay is devoted to providing its more than 20 million active customers to businesses both locally and internationally. There will be even more growth in Europe and beyond when this community adopts the Block protocol.
In contrast, both the Square system and Clearpay are available in Spain and France at the present time, and both offer numerous advantages to retailers and customers alike.
In particular, Clearpay paves the way for Square to expand its seller base, which in turn helps existing Square merchants reach a more upscale clientele and generate more business.
Clearpay’s growth and expansion into other markets will be catalyzed by the enormous and expanding client base brought to us by the Square/Cash app. We are able to reach more people with a payment option that encourages fiscal responsibility because of the app’s expanded features and services for both merchants and customers (Cash App, SME loans, POS services, back-end services, debit items, and others).
While there will be significant synergies created by the combination of Clearpay and Square, Clearpay’s initial focus will be on expanding its merchant base in Europe across its main verticals of apparel, cosmetics, and home goods.
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What sets Clearpay apart from other, comparable solutions already on the market?
In the case of Clearpay, the BNPL gives customers the option to spread out their payments across three monthly instalments, each of which is a fixed amount and maturity date, and comes with no interest or other fees.
With this kind of payment, customers have greater leeway in their purchasing decisions, and it also serves as a useful tool for budgeting, especially for the younger generation.
Who are the people who will profit from using it, and what do they get out of it?
Deferring payments over time are connected with feelings of convenience for 52.5% of the sample polled, flexibility for 46.6%, freedom for 39.6%, the potential for 37%, and prudent financial management for 9.50%.
Clearpay is revolutionizing the payment process by enabling instant goods purchases with no interest if paid in instalments over time. The absence of interest, fees, or long-term debt in exchange for prompt payments is a powerful incentive for customers to exercise fiscal discipline. The initial payment is due at the time of order, the second is due after 30 days, and the third is due after 60 days at no extra charge.
Customers who choose to pay for goods and services over time are more likely to be able to get what they need and want without having to worry about exceeding their monthly credit limit, increasing their average transaction volume, or delaying purchases until the first of the following month, all of which are advantages of instalment plans.
For businesses, what advantages does this hold?
Clearpay is a product that aims to help businesses of all kinds, from well-known national chains to smaller, up-and-coming establishments, improve their online presence.
Clear pay is an effective “marketing engine,” increasing conversions by 22% and average tickets by 30%, decreasing cart abandonment, and increasing customer loyalty and lifetime value. In this approach, Clearpay increases a store’s clientele by attracting a targeted audience of shoppers who are more likely to return for more purchases.
The expansion of Clearpay’s local operations in the countries in which it operates is contingent on the success of its partners, and the solution is designed to help them succeed.
Clearpay has declared itself “merchant centric,” indicating its intention to serve as a bridge between consumers and businesses.
Clearpay works with any online store to protect vendors against fraud and pay them quickly after a sale is made. Any customer who delays a payment will not be able to use the service again until the obligation is settled, demonstrating Clearpay’s commitment to encouraging responsible purchasing.
Can we expect any new offerings from Clearpay in the near future?
Clearpay’s new app, which provides mobile access to all firms that have incorporated Clearpay as a payment method, aims to make shopping even more convenient for its consumers.
The businesses within the app are already separated into internal categories like “fashion,” “beauty,” “sports and leisure,” “home décor,” and “children’s clothing” to better serve all users.
Where does Clearpay hope to take its business in the future?
One year after launching in Italy, Clearpay has established itself as a market leader, and we’ve noticed a surge in demand for alternative payment methods that are both convenient and cost-effective, especially among Italy’s youth.
The app’s recent release and the collaboration we’ve fostered with our partners over the last year have laid the framework for Clearpay’s expansion in Italy, where we hope to provide shoppers more leeway in their budgeting thanks to this convenient software.
More merchants and customers will soon be able to make use of Buy Now Pay Later (BNPL) and our service, and by 2023, we hope to roll out our in-store solution, which is already live in the United States, Australia, and the United Kingdom.
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