What is ClearPay and how can it benefit your eCommerce business?

ClearPay is a great way to help your customers spread out the costs of payments. Today we’ll delve deeper into how this payment solution, that comes packaged with WooCommerce, can benefit you and your business.

Understanding ClearPay: A beginners guide

As an ecommerce business owner, you’re likely always on the lookout for ways to enhance your customers’ shopping experience and boost your sales. ClearPay is a powerful tool that can help you achieve both these goals. And the great news for WooCommerce users is that ClearPay is now native to WooCommerce, meaning sites using WooCommerce can implement ClearPay without additional plugins. Let’s break ClearPay down in simple terms:

What is ClearPay?

ClearPay is a buy-now-pay-later (BNPL) service that allows consumers to make purchases online and pay for them in instalments. Unlike traditional credit options, ClearPay doesn’t charge interest or fees if payments are made on time. It’s a win-win for both shoppers and retailers.

How ClearPay works

From the perspective of an online shopper, ClearPay is extremely simple:

1. Browse and Shop:
   Start by exploring your favourite online stores. When you find something you love, add it to your cart.
2. Choose ClearPay at Checkout:
   When you’re ready to pay, select ClearPay as your payment method. It’s available on thousands of UK websites.
3. Split Your Payment:
   ClearPay divides your total purchase amount into four equal payments. You pay the first instalment upfront, and the rest are spread over the next six weeks.
4. No Interest, No Fees:
   Unlike traditional credit options, ClearPay doesn’t charge interest or fees. As long as you make your payments on time, it’s completely interest-free.

For retailers on WooCommerce, all that is required is to enable ClearPay as a payment method at checkout, and create a ClearPay account.  If you are interested in adding ClearPay to your WooCommerce store, or need some help with a related eCommerce project, drop us a line and we’d love to help.

The ClearPay advantage: What benefits can eCommerce business expect?

For many online verticals, the option to use buy-now-pay-later (BNPL) is a hygiene factor. For markets such as fashion, consumer electronics, home furnishings and fitness equipment, those retailers without a buy-now-pay-later option may find themselves losing to the competition. In other verticals, adding this option can be the reason a consumer chooses your site over a competitor. Whatever the vertical, these are the benefits seen by the average online business:

1. Enhanced customer experience:
   Offering ClearPay as a payment option enhances the overall shopping experience for customers. It provides flexibility and convenience, allowing shoppers to buy what they need without immediate full payment. Some customers may expect a buy-now-pay-later option, in which case not having this can lead to disappointment. 
2. Increased conversion rates / reduced cart abandonment;
   Buy-now-pay-later options like ClearPay have been shown to boost conversion rates for ecommerce businesses. Customers who may have decided against spending money may be more likely to complete their purchase when they can spread payments over time.
3. Attracting new customers:
   ClearPay attracts new customers who appreciate the flexibility it offers. Some customers will specifically seek out businesses where buy-now-pay-later is an option. So by integrating ClearPay, businesses can tap into a broader customer base.
4. Competitive edge:
   In a competitive ecommerce landscape, offering buy-now-pay-later may set businesses apart from the competition. ClearPay can be a unique selling point that attracts shoppers.

ClearPay use cases: Which industries are best suited?

ClearPay can be used at many of the top retail brands in the UK, including Boohoo, PrettyLittleThing, Mango, AllSaints, JohnLewis, Wilko, The Fragrance Shop, JD Sports, Debenham and many more. But some industries are better suited to buy-now-pay-later options than others. The examples below will help define if it is right for your business. 

1. Fashion and Apparel

ClearPay is a game-changer in the fashion industry. Consumers can spread payments for clothing, shoes, and accessories over time.

Business Example:
ASOS, a leading online fashion retailer, offers ClearPay as a payment option. It attracts budget-conscious shoppers and increases average order values.

2. Beauty and Cosmetics

Beauty enthusiasts can indulge in skincare products, makeup, and haircare using ClearPay.

Business Example:
Lookfantastic, an online beauty retailer, leverages ClearPay to enhance the shopping experience. Customers can pay in instalments without interest.

3. Electronics and Gadgets

ClearPay appeals to tech-savvy consumers buying smartphones, laptops, and other gadgets.

Business Example:
Currys PC World integrates ClearPay, allowing customers to split payments for electronics. It reduces cart abandonment and drives sales.

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4. Home and Lifestyle

Home improvement projects benefit from ClearPay. Customers can buy furniture, home decor, and appliances without a lump-sum payment.

Business Example:
Made.com, a furniture retailer, offers ClearPay. It attracts design-conscious buyers seeking flexible payment options.

5. Health and Wellness

Fitness enthusiasts can purchase gym equipment, supplements, and sportswear using ClearPay.

Business Example:
Myprotein, a health and fitness brand, uses ClearPay to cater to health-conscious customers.

6. Travel and Experiences

ClearPay isn’t limited to physical products. Travel agencies can offer flexible payment options for flights, hotels, and experiences.

Business Example:
Lastminute.com integrates ClearPay, making dream vacations accessible to more travellers.

7. Jewelry and Accessories

ClearPay adds sparkle to jewellery purchases. Customers can buy engagement rings, watches, and accessories without immediate payment.

Business Example:
Beaverbrooks, a renowned jeweller, provides ClearPay as a convenient option for luxury purchases.

8. Toys and Gifts

Parents appreciate ClearPay for buying toys and gifts. It eases the financial burden during birthdays and holidays.

Business Example:
Smyths Toys, a toy retailer, embraces ClearPay to enhance the shopping journey for families.

9. Sports and Outdoor Gear

Active individuals can use ClearPay for sportswear, fitness equipment, and outdoor gear.

Business Example:
JD Sports, a sports retailer, integrates ClearPay to cater to athletic shoppers.

10. Pet Supplies

Pet owners can buy quality pet food, toys, and accessories using ClearPay.

Business Example:
Pets at Home, a pet care retailer, offers ClearPay for furry companions.

If you are interested in adding ClearPay to your WooCommerce store, or need some help with a related eCommerce project, drop us a line and we’d love to help.

Driving ROI: How to ensure ClearPay is profitable for your business.

It would be idealistic to think you could simply implement ClearPay and reap the benefits, but the uncomfortable truth is that just as with any eCommerce innovation or step change, implementing a buy-now-pay-later option requires careful implementation, testing and analysis. Here are our top tips on how to ensure implementing ClearPay adds to your bottom line.

1. Research
   This can be as simple or as complex as you make it. But some form of customer validation may be useful if you are unsure of the benefits of implementing buy-now-pay-later. The simplest approach is to check your closest competitors. If they are using buy-now-pay-later, it gives some validation that it will be beneficial for your business. If however your competitors are not, this does not necessarily mean it is not a good fit for you. As discussed, first to offer ClearPay in your market could prove to be a commercial advantage. So if you are first, consider some simple customer feedback to see if there is a direct need. It may be a simple post purchase survey, or something to add to your abandoned basket email flow. Remember, it is always best to seek customer feedback from those who did not purchase as well as those who did. As your primary goals should be to increase conversion rate and average order value. With that in mind, consider asking those who did not purchase whether they would be more likely to purchase if ClearPay was an option. And for those who did purchase, consider asking them if they would be more likely to spend more if spreading their payments was an option. Of course, research is only an indicator. A real life test is required to know for sure.
2. A/B testing
   Ideally, you’ll have the technical capability to implement your buy-now-pay-later option in such a way that only a percentage of site visitors see the option. This way you can compare the metrics (primarily average order value and conversion rate) of people who knew ClearPay was an option vs those who did not. Best practice is to implement the change at a low percentage (around 5% of visitors) and increase slowly if the metrics look positive or neutral. This way you protect against any negative impacts and only increase the roll out when you know the impact looks positive. If you are not able to implement A/B testing, then pre and post analysis is possible, but be sure to choose a time in the calendar where key metrics are as consistent as possible. I.e. no sales or traffic spikes likely in the two weeks before adding ClearPay and the two weeks after.
3. Careful analysis
   A/B testing may give you a clear indication of any impact on average order value (AOV) and conversion rate. And it is perfectly suitable to use these to make the decision on whether to roll out to all visitors or not. But  it is also wise to keep a careful eye on other behavioural metrics to see if the introduction of ClearPay changes any other behaviours. For example, you may find that the inclusion of ClearPay shows more people adding to basket, more starting checkout, or people adding more items to basket without necessarily increasing conversion rate. Or you may find that different products are being selected as a result.
   And of course, over time, you may also see a change in repeat purchases (if appropriate to your business). Though depending on your industry, and business model, it may take months or even years to see any changes in this metric.
4. Margin protection and product selection
   Assessing the impact on margin is key. While you may expect to see an increase in conversion rate or average order value when you introduce ClearPay, it is important to assess whether the gains in those metrics are not off-set by the ClearPay fees (6% + 30p on ClearPay orders). This is particularly important on a product by product basis. If you have some lower margin products, it may not be appropriate for ClearPay to be available on orders of these. A combination of front-end rules may be appropriate here. i.e. ClearPay shows on the product pages for products with margin over x%. ClearPay is made visible for shopping baskets with multiple items.
5. ClearPay promotion and visibility
   To maximise the benefit from implementing a buy-now-pay-later offering like ClearPay, it’s worth promoting the capability as widely as possible throughout the shopper experience. This is particularly advantageous if you are first among your competitors to implement it, but may be an essential hygiene factor if it is an expected service among your demographic.

Some key places to consider marketing ClearPay as a provision are as follows;

• USP banner in the header of your site (if you use one). Placing it alongside key confidence drivers such as ‘Free delivery’, ‘Trustpilot rated excellent’, make your site compelling to new visitors. Placing it in the header also ensures it is visible on all pages (on desktop at least)
• Product page: The product page is where browsers become engaged shoppers. Placing ClearPay messaging on the product page, near the ‘Add to basket’ button can help increase add to basket conversion.
• Shopping basket: The shopping basket is a key stage in the shopping journey, where browsers become buyers. Making ClearPay visible as a checkout option can help encourage this micro-conversion.
• Emails and promotional materials: Adding ClearPay to the ‘DNA’ of your marketing materials can increase awareness of your buy-now-pay-later service in a passive way. This can increase the likelihood that customers will return to your store when they are ready to make their purchase.
• In store: As ClearPay can be used in store as well as online, ensuring customers in store are aware of the option can increase likelihood of visiting the till.

If you are interested in adding ClearPay to your WooCommerce store, or need some help with a related project, drop us a line and we’d love to help.