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what is clearpay?
what is clearpay?

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What is Clearpay?

Clearpay offers a payment solution where shoppers can make immediate purchases and then repay the total amount in four automated instalments, due every two weeks.
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Operated by Clearpay Finance Ltd, and sister to Australian-based Afterpay, Clearpay is a payment service that allows shoppers to make payments instantly and then repay the amount in four automatic instalments, made fortnightly. 

With more than a million downloads on Google Play and rated #19 in the Shopping category in the App Store, there is no doubt that Clearpay is one of the most popular Buy Now Pay Later (BNPL) apps today.

Clearpay effectively gives you a fixed amount of credit to make a purchase, without any interest, while splitting the payments into four equal amounts. 

We look at how Clearpay works and the benefits of using this payment method.

How Clearpay works

Through partnerships with many well-known stores, Clearpay enables customers to immediately purchase items online or in person, while deferring payment.

Customers simply shop online at their preferred retailer and choose Clearpay as their form of payment at the checkout. They then provide their payment details (bank or credit card information) to sign in or create a Clearpay account. 

The cost of your items will be divided into four equal payments; the first will be due right away, and the remaining three will be deducted from your account automatically every two weeks.

Some of the features of Clearpay include:

  • No fees. Clearpay is free to use as long as you make payments on time. 

  • No interest. Clearpay doesn't charge any interest on your shopping purchases. 

  • Automatic payments. Clearpay automatically deducts the remaining three payments from your bank account (one every two weeks).

  • Easy to manage. With Clearpay you split one purchase into four equal amounts.

  • Orders are processed right away. Clearpay pays the retailer the full amount upfront and your order is shipped immediately. 

Fixed repayments

Contrary to Klarna and a few other BNPL suppliers, Clearpay only provides one kind of payment plan. Since everyone follows the same regulations, it could be argued that this makes things easier for the user.

There is no getting around the reality that Clearpay does not allow "trial before you purchase" as Klarna does. This is due to the fact that Clearpay's payment option divides the price of your goods into four equal payments, with the first instalment being collected at the time of purchase.

Even though you will receive your money back if you return the item, the money will continue to be taken out of your account until you decide whether or not you wish to keep your new purchase.

Automatic payments

Clearpay uses automatic payments, preventing customers from having to keep track of due dates and running the danger of missing them.

However, this means that you must make sure there is enough cash in your linked account to cover the expenses. In contrast to Klarna, Clearpay imposes a £6 first-time late payment fee, and if it is still unpaid after seven days, a second £6 fee.

You should be aware of this if you decide to pay using Clearpay.

User-friendly app

Downloading the Clearpay app, which is available for iOS and Android devices, is probably beneficial if you use Clearpay frequently. You can browse the comprehensive list of online retailers that use Clearpay at checkout, manage your payments effectively, examine your payment schedule, and more.

If you have the money available and are interested in finishing your repayment plan sooner, you can also make early instalments.

How much does Clearpay cost?

Using Clearpay is free of interest or other costs. Only if you don't have enough money in your account to cover the automatic payments will you pay more. In this scenario, a late fee will be charged, and you'll have to sign into your Clearpay account to pay the outstanding debt.

Is Clearpay safe to use?

The Payment Card Industry Data Security Standard (PCI DSS) has granted Level 1 certification to the Afterpay Touch Group, of which Clearpay is a member. Your card information and personal information are always secure when you shop with Clearpay, according to the business.

How to use Clearpay

To set up a Clearpay account you have to be at least 18 years old and shop with a retailer that accepts Clearpay. If you shop online, you can follow these steps:

  • Find a retailer that offers Clearpay and add items to your basket.

  • During the checkout process, Clearpay will be listed as an option.

  • Follow the steps to create your account.

  • Choose a payment method to link to your Clearpay account. This can be a debit card or credit card.

  • Once you confirm your details you'll get an immediate outcome. If approved, Clearpay will take the first payment from your chosen account.

  • Your order will be shipped to you immediately after payment at checkout.

  • Clearpay will send you notifications before all upcoming payments so that you can ensure you have enough funds available in your nominated account.

If you want to shop in-store, you can simply download the Clearpay app from the iStore or Google Play, and follow the in-app instructions to set up your Clearpay account. You can then continue with your purchase and use Clearpay with Apple Pay or Google Pay for contactless payment at the checkout.

You will pay 25% (the first of four payments) immediately and take your items with you. The remaining three payments will be taken from your account, one every two weeks.

What if I'm late with payments?

If you don't make a payment on time, Clearpay will instantly stop you from utilising the service to make any more transactions. For orders that are less than £24, the late fee cap is £6.

If you choose an alternative payment method for orders above £24, you have until 11 p.m. the following day to complete the transaction. If you don't, a £6 late fee will be applied.

If the payment is not received within seven days, an additional fee of £6 will be charged. The late fees charged are capped at 25% of the order value or £36, whichever is less, for each order of £24 or more.

Credit reference agencies have announced that Buy Now Pay Later debt will start showing up on credit reports from spring 2022 so it could impact your credit rating.

Clearpay vs Klarna

Founded in 2005, Klarna is currently one of the most popular BNPL apps in the UK with more than 10 million downloads from the Google Play store as of July 2022.

But different to Clearpay, Klarna offers three payment methods: 

  • Pay in 30 days. You receive an invoice for your purchase and you have 30 days to pay the full amount. 

  • Finance. Your purchase is split into monthly payments with interest rates up to 18.9% APR.

  • Pay in 3. Split the purchase cost into three equal payments with no interest. The first payment is due at the time of purchase, the second one 30 days later, and the final payment 60 days later. 

Clearpay doesn't do a credit check or consider your credit score when assessing your affordability but it may conduct a pre-authorisation on your selected payment method. Klarna, however, does a soft credit check on your profile to assess your affordability for its Pay in 30 and Pay in 3 options.

For a missed payment, Clearpay will charge you a late fee, depending on the order amount, which is capped at £6. You will also be prevented from making any additional purchases. Late payments over £24 will be charged an additional £6 if you don't pay the outstanding amount within seven days.

Klarna doesn't charge late fees for late payments. If you chose the Pay in 3 credit option Klarna will try two more times to take the payment. If unsuccessful, it will be rolled over to your next instalment.

If you still can't pay on the third attempt, Klarna will contact you to see if you prefer another payment method and if no solution can be found the debt will be passed to a debt collection agency.

For the Pay in 30 credit option, if your debt remains unpaid for several months, it will be classed as arrears and handed over to a debt collection agency.


Clearpay is one of the most well-known BNPL platforms in the UK, and for good reason. The payment platform has some very useful features, and it's quite simple to use, set up and manage.

There are mainly two negatives. First, there are fewer payment plan options available than with Klarna's three choices and customers can't "test before they buy," at least not without paying the first instalment.

Second, due to Clearpay's £6 late fees, many customers will probably prefer Klarna, with zero late fees.

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