Clearpay is a payment service that allows customers to buy products and pay for them later in four automatic installments, made every two weeks. Clearpay lends customers a fixed amount of credit to make purchases instantly, and the purchase is split into four payments, always interest-free. Clearpay is available to permanent UK residents aged 18+ with a UK billing address. Customers with international billing addresses will not be able to use Clearpay or create a Clearpay account. Clearpay is not regulated by the Financial Conduct Authority.

Clearpay is partnered with thousands of retailers across the globe, and customers can shop now and pay later at these retailers. Late fees are capped at £6 for orders under £24 and the lower of £24 or 25% of the order value for orders over £24. Missed payments may affect the customers ability to use Clearpay in the future, and they may pass unpaid debt to a debt collection agency.

To use Clearpay, customers must download the app and sign up. There are no long applications, and customers need to have their email, phone number, address, DOB, and debit/credit card handy. Clearpay will split the total value of the order into four installments payable every fortnight. The exact amounts and dates will be displayed for the customer to agree to before they confirm their purchase. If the customer would like to make additional unscheduled payments before they are due, they may log into their Clearpay account to make their payments early, and Clearpay will adjust the amount owed accordingly.

Clearpay does not run a credit check on customers when they make an account. Instead, to make sure customers are likely to be able to make repayments, it may conduct a pre-authorization on the customers nominated card, up to the amount of their first installment. As soon as a customer misses a payment, Clearpay will immediately stop them from making any further purchases. For orders under £24, the customer will be charged one late fee capped at £6. For orders over £24, the customer will also be charged an initial late fee of £6 and a further fee of £6 if the payment is not made within seven days. For orders over £24, Clearpays late fees are capped and will never go higher than 25% of the order value or £36, whichever is less.

Clearpay is similar to other buy now, pay later services like Klarna, but it is designed to offer flexible payments without the risk of getting into debt. Clearpay assigns spending limits based on a customers previous spending history on the app and charges no interest.