Fashion conglomerate Frasers Group has reportedly set its sights on adding a new financial service to its already expansive portfolio.
Under its new boss Michael Murray, the group is said to be preparing to launch its own Buy Now, Pay Later (BNPL) scheme, which could allow buyers to borrow up to 2,000 pounds.
According to The Telegraph, the payment product may be coming as part of a range of new financial services launched under Murray, linked to the group’s ‘Frasers Plus’ programme.
Once launched, the publication said shoppers will be able to split and defer payments, or take out a loan through an app, which can then be spent with its portfolio of retail brands, including House of Fraser, Flannels and Sports Direct. Customers will then be rewarded with points while shopping.
Tymit, a fintech firm Frasers holds a 28 percent stake in, will facilitate the BNPL payments.
While the sector has been under increasing scrutiny in recent years and subject to extensive regulation, Murray is said to be hoping such regulation will give the scheme an edge over its competitors, like Klarna.
Many of these firms have faced challenges in light of unregulated products and a lack of monitoring, areas that are beginning to become more regulated in a bid to avoid mounting debt among customers.