Online lender NewDay has launched an instant access digital credit account with flexible repayment terms designed to protect its business from the rising tide of buy now, pay later providers.
Newpay offers customers a credit limit of up to £5,000, which can be used across a range of online retailers. The digital credit account allows customers to break down the cost of online purchases into monthly payments over a two-year timeframe, with just one amount to pay each month, even if an individual has multiple payment plans.
Checking eligibility for Newpay does not impact an individual’s credit profile, with a quick no risk check carried out. If a customer passes the eligibly check and decides to apply for an account, a more detailed assesment, which will show on their credit file, will be conducted.
Newpay allows for a range of payment plans - from monthly instalments with fixed payments over periods from six to 24 months on purchases over £100 at a standard rate of interest, monthly instalments with fixed payments from six to 24 months at 0% interest with selected retailers, or revolving credit.
Ian Corfield, chief commercial officer at NewDay, says: “Many unregulated Buy Now Pay Later providers offer products that require customers to make multiple payments across those plans each month. With Newpay, we wanted to offer customers the ability to choose payment plans and timeframes that suit them, with customers paying just one amount each month, even if they have multiple payment plans in place across their purchases."