Clearpay is the UK’s second most widely used Buy Now Pay Later provider after Klarna. Available at ASOS, Boots, JD Sports, and thousands of other retailers, it’s popular for fashion and beauty purchases. Here’s exactly how it works and what the risks are.
How Clearpay Works
Clearpay splits any eligible purchase into four equal fortnightly payments:
| Payment | When |
|---|---|
| Payment 1 | At checkout (25% of total) |
| Payment 2 | 2 weeks after checkout |
| Payment 3 | 4 weeks after checkout |
| Payment 4 | 6 weeks after checkout |
Payments are charged automatically to your linked debit or credit card. There is no interest. You must be 18+, a UK resident, and have a UK payment card.
Example: £120 purchase at ASOS
- Payment 1: £30 at checkout
- Payment 2: £30 in 14 days
- Payment 3: £30 in 28 days
- Payment 4: £30 in 42 days
Total paid: £120 — no extra cost if paid on time.
Clearpay vs Klarna — Key Differences
| Feature | Clearpay | Klarna |
|---|---|---|
| Repayment model | 4 x fortnightly | 3 x monthly (Pay in 3) or 30 days |
| Repayment period | 6 weeks | 60 days (Pay in 3) or 30 days |
| First payment | At checkout | At checkout or at delivery |
| Late fee | £6 per late instalment, plus £6 more if unpaid after 7 days (orders over £24) | Up to £6 per instalment |
| In-store use | Via app (selected retailers) | Via Klarna card or app |
| Financing option | No | Yes (Klarna Financing) |
| Spending limit | Estimated amount shown in the app | Variable |
| Credit reporting | Missed payments may be reported | Yes (since June 2022) |
Both providers say they may report to UK credit reference agencies. Both charge late fees but not interest. The main practical difference is the repayment schedule: Clearpay’s 4 x fortnightly is slightly faster than Klarna’s 3 x monthly.
Fees and Costs
| Situation | Cost |
|---|---|
| All payments on time | £0 |
| One late instalment | £6 late fee |
| Still unpaid 7 days later (orders over £24) | A further £6 late fee |
| Cap per order | Orders over £24: the lower of £24 or 25% of the purchase price; no late fees under £24 |
| Interest | None |
| Default — debt collector involved | Credit damage, potential CCJ |
Clearpay’s own late fees are capped as shown above. Clearpay says it may pass unpaid debt to its debt collection agency.
Spending Limits
Clearpay shows an estimated amount you can spend in its app. It says this amount is not guaranteed and may differ if you shop with retailers that set their own limits. Clearpay also carries out a soft credit check when you first sign up and periodically afterwards, which is visible only to you.
Credit File Impact
Clearpay says it makes reports to credit reference agencies, without naming them:
| Behaviour | Credit impact |
|---|---|
| All payments on time | Positive — builds credit history |
| Late payment | Negative, if reported |
| Default | Significant negative impact |
| Account suspended | May signal credit risk |
Clearpay’s terms say missed payments may make it more difficult or expensive for you to borrow credit in the future.
For mortgage applications: Lenders are increasingly checking BNPL balances and history as part of affordability assessments. Clear all Clearpay balances and avoid new applications 3–6 months before a mortgage application.
Returning Goods
If you return goods purchased via Clearpay:
- Clearpay’s terms say you arrange the return and refund with the retailer, under its policies or your consumer law rights
- Clearpay says it adjusts your Clearpay Plan to reflect a refund on the transaction financed
- Where you return goods 120 days or more after buying them, Clearpay says it is not involved in the refund process
- Clearpay’s app shows active orders and refund status, so check it regularly
Best practice: Keep evidence of returns (tracking numbers, receipts). Contact Clearpay if a refund doesn’t appear after the retailer confirms the return.
Is Clearpay Regulated?
The FCA started regulating deferred payment credit on 15 July 2026, where the lender and the supplier of the goods are different businesses. Clearpay Finance Ltd is on the FCA’s list of lenders with temporary permission, which means it has to follow the FCA’s rules for agreements entered into from 15 July 2026.
For agreements taken out from 15 July 2026, the FCA says lenders need to check you can afford to repay, you can complain to the Financial Ombudsman Service, and Section 75 of the Consumer Credit Act is available.
For agreements taken out before 15 July 2026, the FCA says they remain unregulated and the new protections do not apply.
Debt Stacking Risk
The same BNPL stacking risk that applies to Klarna applies to Clearpay:
- Multiple simultaneous orders across retailers add up
- Fortnightly payments from multiple orders overlap
- The Clearpay app shows your total outstanding but not combined with other BNPL providers
Before each purchase, review your total BNPL commitments across all providers (Klarna, PayPal Pay Later, Laybuy, etc.) and ensure total payments in the next 6 weeks are affordable from your income.
Getting Help
If you’re struggling with Clearpay payments:
- Contact Clearpay directly — before missing a payment, not after
- Request a payment extension — Clearpay may be able to adjust your schedule
- Contact Citizens Advice — 0800 144 8848 for BNPL debt advice
- Contact StepChange — 0800 138 1111 if BNPL is part of wider debt
Related Guides
- Buy Now Pay Later hub — full BNPL guide including all providers
- Klarna UK Guide — how Klarna compares to Clearpay
- Credit Scores hub — how BNPL affects your credit file
- Credit Cards — the regulated alternative with Section 75 protection