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UK Point of Sale Finance (including Buy Now Pay Later): Market Insight Report 2021

  • PDF Icon

    Report

  • 58 Pages
  • April 2021
  • Region: United Kingdom
  • Apex Insight
  • ID: 5457605

FEATURED COMPANIES

  • ApptoPay
  • Clearpay
  • Home Retail Group
  • NewDay
  • Premium Credit
  • Shop Direct
This report focuses on the UK market for point of sale, or POS, finance. Also known as retail finance, in-store credit, store instalment credit or Buy Now Pay Later (BNPL), it refers to loans provided by, or on behalf of, a retailer to enable a consumer to make a specific purchase.

This new edition of the report has been updated and extended to take into account recent growth in the market and to revise our market size estimates. The report quantifies the market size in loans outstanding, new lending and loan provider revenues, historical growth rates and levels of industry profitability.

This report addresses questions on the market:


  • How does the market work? What changes have there been recently?
  • What would be the impact of an interest rate rise?
  • Which types of retailers use it most frequently?
  • How does it compare with alternative and substitute forms of finance?
  • What role has new technology played in the market?
  • What is the market size and historical growth rate, in terms of total loans outstanding, new lending and lender revenues?
  • What are the risks to future market growth?
  • How does the market compare with those in other countries?
  • Who are the main finance providers and principals, which are most widely used by retailers, how have they performed?
  • In simple terms, what do they each do, who do they work for and how do they operate?
  • What do the leading UK retailers do - to what extent do they use this form of finance, how do usage patterns vary by sector, which providers does each use and what is the extent of churn?

Point of sale (POS) finance - also called retail finance, in-store credit or store instalment credit - refers to fixed-term loans provided by, or on behalf of, a retailer to enable a consumer to make a specific purchase. It includes purchases of goods from high street stores and online as well as purchases of services from medical, beauty or other providers Many retailers choose to subsidise the cost of the credit as a promotional expenditure and offer “interest-free credit” or “zero per cent finance”

It is used by both national retail chains and independent shops, most commonly in the home and furniture, jewellery and electricals sectors. Loans are generally set up as personal loans, not secured on the asset and without a lease arrangement. Interest-free loans are generally for 3-12 months with an APR of 0% (i.e no additional fees are charged). Charged-for loans are generally for periods of 12-60 months with an APR of 15-20% being typical.

Some retailers offer both fixed-term, product specific POS alongside revolving credit such as store card accounts.

Until recently, purchases needed to be over £200in value for POS finance to be viable, given fixed set-up costs. But, in the last couple of years, there has been growth in smaller and shorter-term interest free offers, with minimums as low as £30..

FEATURED COMPANIES

  • ApptoPay
  • Clearpay
  • Home Retail Group
  • NewDay
  • Premium Credit
  • Shop Direct

About this ReportSummary
About the Publisher
  • Contents
About the Market
  • POS finance is consumer credit provided for the purchase of specific goods or services
  • Legal structure of POS finance solutions
  • POS market structure
  • POS products
  • Who offers POS finance?
  • Conventional POS finance via physical stores
  • Conventional POS finance via E-Commerce sites
  • Conventional POS finance via medical and other professional practices
  • Total conventional POS
  • Retailers offering shorter-term POS facilities
  • Local case study: Salisbury
  • Regulation of the POS market
  • Regulatory requirements
  • Obtaining FCA authorisations
  • Possible further changes to regulation
  • POS terms offered by leading retailers
  • Adjacent markets include store cards and credit accounts
  • Store cards and credit accounts
  • Credit cards
  • Personal loans
  • Car finance
  • Small business POS
  • Market size and growth
  • Market size by loan books
  • Market size by volume of new lending
  • Market size by volume of lender revenues
  • Market drivers and forecasts
  • COVID-19
Competitive landscape
  • Overall market shares by lender
  • Market share by sectors and leading retailers
  • Brokers
  • Deko
  • Description
  • History
  • Product
  • Financials
  • Key clients
  • Divido Financial Services Ltd.
  • Other brokers
  • Key lenders
  • Barclays Partner
  • Description
  • History:
  • Types of Funding Structures
  • Financials
  • Key POS Clients
  • Description
  • History
  • Financials
  • Key POS clients
  • Clearpay
  • Description
  • History
  • Financials
  • Key Clients
  • Hitachi Capital
  • Description
  • History
  • Products
  • Financials
  • Key clients:
  • Home Retail Group
  • Description
  • History
  • Financials
  • Recent News
  • Ikano
  • Description
  • History
  • Financials
  • Key clients
  • Description
  • History
  • Close Brothers Retail Finance
  • Financials
  • Key clients
  • OMNI Capital Retail Finance Ltd
  • Description
  • History
  • Financials
  • Products
  • Key clients
  • Paybreak Limited (afforditNOW)
  • Description
  • Products
  • Financials
  • Key clients
  • PayPal
  • Description
  • Products
  • Financials
  • Key clients
  • Rematch Credit (DivideBuy)
  • Background
  • Products
  • Financials
  • Customers
  • Secure Trust (V12 Retail Finance)
  • Description
  • History
  • Products
  • Finance
  • Key clients
  • Shop Direct
  • Description
  • History
  • Products
  • Finance
  • Other lenders
  • ApptoPay
  • Auto Serve Finance Limited,
  • Azule Limited
  • Caledonian Consumer Finance
  • Carnegie Consumer Finance
  • First Senior Finance Limited
  • Funeral Safe
  • Laybuy Holdings
  • Lending Works Limited
  • NewDay
  • Pay Later Financial Services (Fly Now Pay Later)
  • PayitMonthly Limited
  • Payment Assist
  • Paysafe Financial Services
  • Premium Credit
  • Propensio Finance
  • Shawbrook Bank
  • Snap Finance Ltd
    . (Pay Weekly)
  • Social Money Ltd (Payl8r)
  • Specialist Lending Ltd (Duologi)
  • Splitpay
  • Tabeo Broker
  • Tymit Limited
  • Wesleyan Bank
List of Exhibits
  • POS finance market definition
  • Point of sale (POS) finance channels
  • Number of independent stores offering POS finance
  • Usage of POS finance by Salisbury retailers
  • Key FCA regulatory requirements relevant to POS finance
  • POS terms offered by leading retailers
  • Loan book size of leading POS loan funding providers/£m
  • Total market new POS lending/£m
  • Total market POS gross revenues/£m
  • Pay4Later Ltd. summary financials
  • Clydesdale Financial Services Ltd summary financials
  • Creation Consumer Finance Ltd summary financials
  • Hitachi Capital (UK) Plc summary financials
  • Home Retail Group Card Services Ltd. summary financials
  • IKANO Bank AB summary financials
  • V12 Retail Finance Ltd summary financials
  • Shop Direct Finance Company Limited summary financials

A selection of companies mentioned in this report includes:

  • ApptoPay
  • Auto Serve Finance Limited,
  • Azule Limited
  • Barclays Partner
  • Caledonian Consumer Finance
  • Carnegie Consumer Finance
  • Clearpay
  • Close Brothers Retail Finance
  • Deko
  • Divido Financial Services Ltd.
  • First Senior Finance Limited
  • Funeral Safe
  • Hitachi Capital
  • Home Retail Group
  • Ikano
  • Laybuy Holdings
  • Lending Works Limited
  • NewDay
  • OMNI Capital Retail Finance Ltd
  • Pay Later Financial Services (Fly Now Pay Later)
  • Paybreak Limited (afforditNOW)
  • PayitMonthly Limited
  • Payment Assist
  • PayPal
  • Paysafe Financial Services
  • Premium Credit
  • Propensio Finance
  • Recent News
  • Rematch Credit (DivideBuy)
  • Secure Trust (V Retail Finance)
  • Shawbrook Bank
  • Shop Direct
  • Snap Finance Ltd. (Pay Weekly)
  • Social Money Ltd (Paylr)
  • Specialist Lending Ltd (Duologi)
  • Splitpay
  • Tabeo Broker
  • Tymit Limited
  • Wesleyan Bank