NewDay, one of the UK’s largest providers of consumer credit, has launched Newpay, an instant access digital credit account designed to help people spread the cost of bigger online baskets and purchases.
Newpay offers customers a digital credit limit of up to £5,000, which can be used across a range of online retailers, allowing them to break down the cost of internet purchases into manageable monthly payments, with just one amount to pay each month - even if an individual has multiple payment plans.
There is just one account for all purchases, allowing customers to see their Newpay purchases in one place, either online via the Newpay website or in the Newpay App.
A credit product regulated by the Financial Conduct Authority (FCA), Newpay uses the same standard of affordability checks as NewDay’s other consumer credit products, with an individual’s ability to repay considered at the application stage.
NewDay’s own-branded credit cards
- Aqua credit card
- Marbles credit card
- Opus credit card
- Fluid credit card
NewDay’s co-branded credit cards
- Amazon credit card
- Tui credit card
- Debenhams credit card
- House of Fraser credit card
- Laura Ashley credit card
- Burton Menswear credit card
- Dorothy Perkins credit card
- Evans credit card
- Miss Selfridge credit card
- Outfit credit card
- Topman credit card
- Topshop credit card
- Wallis credit card
Checking eligibility for Newpay does not impact on someone’s credit file, with a quick ‘no risk’ check carried out.
If a customer passes the eligibility check and decides to apply for a Newpay account, a more detailed check, which will show on their credit file, will be conducted.
As a credit account, Newpay can help customers to build their credit score over time, provided that they remain within their credit limit and make their monthly payments on time.
This is a key differentiator for customers, unlike some unregulated Buy Now Pay Later products in the market.
Newpay customers only need to be approved once and receive a credit limit that will apply to all current and future purchases made via their Newpay account, rather than have each transaction approved individually.
Customers can use their Newpay account for multiple purchases, provided that the outstanding balance across all purchases remains within their credit limit.
Newpay allows for a range of payment plans, including:
- Monthly instalments with fixed payments over periods from six to 24 months on purchases over £100 at the customer’s standard rate of interest
- Monthly instalments with fixed payments from six to 24 months at 0% interest with selected retailers
- Revolving credit
Customers simply pick which of these payment plans they want when making their purchase. The Newpay App allows customers to track and manage payments easily.
Ian Corfield, Chief Commercial Officer at NewDay, said: “We believe Newpay can help meet customer needs in the evolving e-commerce space. 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.
“As a consumer credit company, we believe our regulated offering and expertise in understanding and assessing an individual’s credit profile positions us to offer customers meaningful products. Newpay helps people to move forward with credit, provided that they remain within their credit limit and make their monthly payments on time.”
Get the latest money-saving and benefits news sent straight to your inbox. Sign up to our weekly Money newsletter here.
