Clearpay (Afterpay)
Clearpay is the UK trading name for Afterpay, the BNPL platform owned by Block Inc. The product is identical in structure: customers split their purchase into four equal fortnightly instalments, interest-free, while the merchant receives full payment upfront. Block acquired Afterpay in 2022 and operates Clearpay as the UK and European brand, with Clearpay Finance Limited as the regulated UK entity.
With 3.5 million active UK shoppers, Clearpay has established meaningful consumer penetration in the UK market, particularly in fashion, beauty, lifestyle, and accessories. Merchants integrating Clearpay report average basket sizes up to 50% higher than non-BNPL transactions, up to 40% more new customers, and a 15% average increase in overall profit margin compared to pre-Clearpay levels. These figures come from Clearpay’s own marketing, so applying independent judgement to whether those lifts are attributable solely to BNPL or partly to merchant mix is worth doing before committing to the integration cost.
On the cost side, Clearpay charges merchants a merchant discount rate per transaction, typically in the range of 4 to 6% plus a fixed fee, in line with Afterpay’s broader fee structure. Exact rates are agreed commercially and not published, which means the rate you are offered is negotiable and worth benchmarking. The merchant absorbs no fraud or chargeback risk on Clearpay transactions, as Block takes on that liability, which partially offsets the higher per-transaction cost compared to card acceptance.
Regulation is tightening in the UK BNPL market. The Financial Conduct Authority is extending its consumer credit regime to cover BNPL products, which will add compliance obligations for both providers and merchants. This is a material development for any merchant with Clearpay in their checkout and worth monitoring as the regulatory timeline progresses.
PSP access is available through Square, PPRO, and a range of other providers. Direct integration with Clearpay is also straightforward for most major e-commerce platforms.
Relevant markets: United Kingdom
