NewDay responds to BNPL’s inroads with NewPay
Online lender NewDay has launched an instant-access digital credit account with flexible repayment terms, designed to shield its business from the rising tide of buy-now, pay-on providers.
Newpay offers customers a credit limit of up to Â£ 5,000, which can be used by a range of online retailers. The digital credit account allows customers to break down the cost of online shopping into monthly payments over a two-year period, with only one amount payable each month, even if a person has multiple payment plans.
Newpay eligibility verification has no impact on an individual’s credit profile, as a quick risk-free check is performed. If a customer passes the eligibility check and decides to request an account, a more detailed assessment, which will appear on their credit report, will be performed.
Newpay allows a range of payment plans – monthly payments with fixed payments over periods of six to 24 months for purchases over Â£ 100 at a standard interest rate, monthly payments with fixed payments of six to 24 months at 0% interest with retailers, or revolving credit.
Ian Corfield, Commercial Director of NewDay, said: âMany unregulated buy-it-now and pay-on providers offer products that require customers to make multiple payments on these plans each month. With Newpay, we wanted to give customers the flexibility to choose the payment plans and time frames that are right for them, with customers only paying one amount per month, even if they have multiple payment plans in place for their purchases. ”