/payments

News and resources on payments systems, innovations and initiatives worldwide.

NewDay responds to BNPL incursions with NewPay

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.

  1 3 comments

NewDay responds to BNPL incursions with NewPay

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

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."

Sponsored New Report – The Future of Embedded Finance in Africa 2025

Related Company

Keywords

Comments: (3)

A Finextra member 

a credit card..

A Finextra member 

this is not BNPL

Rob Fernandes

Rob Fernandes . at Pay2Z.com

"A credit card" "This is not BNPL"

Explain the difference? The only functional difference in the model is that BNPL is distributed and offered at the point of checkout, credit cards traditionally are issued in advance to a customer (and have been for nearly 100 years, normally in plastic). But those lines are blurring.

Newpay is offered and applied for at checkout, which is no different to any other BNPL button. Your statement is wrong. The fact it supports multiple purchases is simply a benefit to the consumer - and exactly what Klarna wants to do and is doing with customers using its BNPL button. 

[Impact Study] 2024 Fraud Trends in Banking, Insurance, and BeyondFinextra Promoted[Impact Study] 2024 Fraud Trends in Banking, Insurance, and Beyond