Finance Options Explained

Pay in 3 allows you to split your purchase into 3 interest-free instalments, paid every 30 days. Just choose Klarna at checkout at partner stores. The first instalment will be taken from your credit card, debit card or bank account when your order is shipped. The remaining 2 instalments will be automatically charged every 30 days afterwards, with no interest or fees if you pay on time.

Your Klarna account is already set up with automatic payment withdrawals to help you stay on top of your payments.

A late fee will be added to your balance if we have not been able to collect your payment up to 14 days after an instalment is due. Prior to this, we will send friendly reminders via SMS, push notification, and email. You will only be charged a maximum of one late fee per unpaid instalment. We won’t charge you a late fee if you have less than £1 left to pay.

To be eligible to use Klarna you must:

• Be a UK resident
• Be at least 18
• Have a valid card/bank account
• Be able to receive verification codes via text

It’s really easy to buy something using Newpay. When you go through to checkout, just make sure you choose Newpay as your payment method. Then simply pick between instalment plan or flexible credit and follow the steps to finish your purchase.

With your Newpay account you can get a credit limit of up to £5,000. Use this to make any purchases at our range of retailers, and then just pay the minimum payment every month or more when you can afford it. There is no fixed repayment timeline.

Payments

You will need to pay at least your contractual minimum payment each month to keep your account up to date. Newpay will confirm this amount on your monthly statement. However, you can repay as much of your balance as you like each month. Paying more than the minimum will mean you will repay your balance faster and will cost you less in interest.

If you’re spending over £100, an instalment plan might be right for you. An instalment plan can help you to clear your balance faster and would cost less when compared to making contractual minimum payments with the flexible credit option.

You can choose to spread the cost and interest over 6-48 months, and Newpay will calculate how much you need to pay each month. There’s no deposit to pay and the monthly instalment amount will be fixed for the length of the plan, so you won’t have to make any extra payments towards your plan.

Payments

You will need to pay at least your contractual minimum payment and your monthly instalment payment each month otherwise your instalment plan will be cancelled. We will confirm this amount on your monthly statement. Payments towards your instalment plan are optional, and you will not go into arrears if you choose to only pay your contractual minimum payment. However, your plan will be cancelled.

The estimated amount

When you select the instalment plan option at checkout, the monthly amount may be shown as estimated as it is based on the representative APR. Once you have been accepted for a Newpay account, the amount we show you will be based on your personalised interest rate.

The monthly instalment amount you pay may also be slightly different to the estimated amount because it takes us a few days to set up your plan and interest is calculated at the point of set up. We will confirm by email the exact amount of the monthly instalments once your plan has been set up.

Cancellation

You can cancel your instalment plan at any time. There is no cancellation fee. If you decide to cancel your instalment plan, the remaining balance on your instalment plan will be moved to your flexible credit balance (this is your standard purchase balance) and will be charged at your standard purchase rate.

If you do not keep up with your monthly payments or your go over your credit limit, we will cancel your instalment plan.

Direct Debits

If you have a Direct Debit, the amount we collect will always include your monthly instalment payment.

With a 0% interest instalment plan, you’ll spread the cost of your purchase by paying a fixed monthly amount. By paying the agreed amount every month, you won’t have to pay any interest and your purchase will be paid off by the end of the instalment plan period.

Payments

You will need to pay at least your contractual minimum payment and your monthly instalment payment each month otherwise your instalment plan will be cancelled. We will confirm this amount on your monthly statement. Payments towards your instalment plan are optional, and you will not go into arrears if you choose to only pay your contractual minimum payment. However, your plan will be cancelled, and you will start to be charged interest on the purchase balance.

Cancellation

You can cancel your instalment plan at any time. There is no cancellation fee. If you decide to cancel your instalment plan, the remaining balance on your instalment plan will be moved to your flexible credit balance (this is your standard purchase balance) and will be charged at your standard purchase rate.

If you do not keep up with your monthly payments or your go over your credit limit, we will cancel your instalment plan.

Direct Debits

If you have a Direct Debit, the amount we collect will always include your monthly instalment payment.

PayPal Pay in 3 is an interest-free loan that lets you split your basket into 3 payments, with the first due at time of purchase and subsequent payments due every month on the same date. It’s a great way to spread the cost of larger items or to cover emergencies, and is a helpful tool to manage your budget more effectively. Pay in 3 is an unregulated credit agreement, so you will have fewer protections under this agreement than you would under a regulated credit agreement. Carefully consider whether the purchase is affordable and how you will make the repayments. Be aware of the possible impact of using Pay in 3 and of missing payments, including making other borrowing more difficult or more expensive.

We’re offering PayPal Pay in 3 to a growing number of our UK customers.

PayPal Pay in 3 is not available for certain merchants and goods. We may also decide not to offer PayPal Pay in 3 as a payment option in certain circumstances, such as where our checks suggest an increased risk of fraud or where data we hold suggests you may not be eligible. The checks we run are with an external credit reference agency. This search will only be visible to you and will not affect your credit score.

If you choose PayPal Pay in 3 as your payment method when you check out with PayPal, you’ll be taken through the application process. You’ll get a decision instantly, but not everyone is approved based on the checks we carry out.

When applying for a PayPal Pay in 3, we may conduct a “soft” credit check if we need more information to make a decision. “Soft” credit checks are not visible to others, so have no impact on your credit file. However, we do share some data on your repayment history with Transunion. Although it does not impact your credit score, this data will be visible to other companies and may impact your ability to obtain credit from other lenders and the cost of accessing it. More information is available in our Pay in 3Terms & Conditions.

To apply for PayPal Pay in 3, you’ll need to provide your:

• Title
• Phone number
• Address
• Date of birth
• Payment details

Our decision making process is automated. We assess your financial position using a combination of the information you provided within your application, and information about your usage and history with PayPal to decide whether PayPal Pay in 3 is suitable for you at this time. We may also run a “soft” credit check with an external credit reference agency when you apply if we need more information to make our decision. This search will only be visible to you and will not affect your credit score.