Frasers Group has launched its own Buy Now, Pay Later (BNPL) service, Frasers Plus.
Frasers Plus is a service where consumers can use a credit limit to purchase goods before paying.
Consumers can pay in three ways; either by paying in full at the end of the monthly billing period or by spreading payments across three months, both of which are interest-free.
Shoppers also can also decide to spread payments from anywhere between six to 36 months, at which point interest is accrued at 29.9% APR.
Aside from offering credit and the chance to defer or spread payments, Frasers Plus customers can earn one point for every £1 they spend via their Frasers Plus account, which can be turned into rewards.
Frasers’ service is being provided by Tymit, an instalments credit company launched in 2019 by brothers Martin and Nico Magnone.
So far, BNPL products have almost exclusively been provided by fintech companies, such as Klarna or ClearPay, although Marks and Spencer launched a similar digital credit account in October, allowing Sparks card holders to borrow up to £500.
According to the M&S website, customers can apply for a credit limit of £500, which can be paid back interest-free for up to 45 days (76 days for the first order).
Interest thereafter may be charged at 23.9% APR.
BNPL services had been under intense government and public scrutiny since they first arrived on the scene due to fears over potentially plunging people into debt as a result of loose regulation on the sector.
In June of last year, the Government said millions of people will be protected through a strengthening of regulation on BNPL credit agreements.
Lenders will be required to carry out affordability checks and rules will be amended to make sure advertisements are fair, clear and not misleading.
Those offering products will also need to be approved by the Financial Conduct Authority.