A group of UK retailers are backing a new BNPL alternative from charity-owned responsible lender Fair for You.
The Fair for You Shopping Card loan is designed for the millions of Brits who need help spreading the cost of essential purchases.
Customers can apply for a credit limit of up to £350, with money loaded onto a prepaid Mastercard that can be used as part or full payment online or in-store at partner retailers. Users can apply to top up once their balance is nearly paid off.
Customers see exactly what they owe based on their payment plan, not just an APR. They can pay weekly, fortnightly, four weekly or monthly, and can reschedule repayments, while there are no charges for repaying early or changing schedule.
Argos, Iceland Foods, Habitat, Dorset Home Stores, and ChemistDirect are among the retailers that will accept the card at launch, with more lined up.
Fair for You, which has supported over 90,000 customers since being founded in 2015, expects that the new card will see its base expand by a further 100,000 over the next three years.
Simon Dukes, CEO, Fair for You CIC, says: "Across the UK, millions of people have less than £100 in savings or will struggle to get credit, including through Buy Now Pay Later providers.
"We want to make sure that those people can purchase life’s essentials, whether it’s putting down flooring in a new home, buying school uniform or baby equipment or replacing an appliance when it packs in."