What: Debenhams introduces DebenhamsPay+, a dual-function credit payment service offering both interest-free instalments and flexible credit options for online purchases.

Why it is important: This payment innovation strengthens Debenhams' digital marketplace strategy, building on its recent success in transforming from a traditional retailer to a leading online platform with proven growth in gross merchandise value.

Debenhams has launched DebenhamsPay+, a versatile credit payment system that enhances its online marketplace offering. The new service provides customers with two distinct payment options: an interest-free instalment plan for orders over GBP 15, and a flexible credit function with a 29.9% APR variable rate. Customers can manage their payments through the DebenhamsPay+ app or website, with no upfront payment required and the ability to set their preferred monthly payment date. This launch follows a successful trial period that began in January and comes at a pivotal time for the company, as Boohoo Group rebrands to Debenhams Group. The payment solution is currently available on the Debenhams website, with plans for expansion across other Debenhams Group brands.

IADS Notes: Debenhams' launch of DebenhamsPay+ in March 2025 represents a significant milestone in the company's digital transformation journey. The timing is particularly strategic, coming just after Boohoo Group's rebranding to Debenhams Group, which acknowledged Debenhams' successful marketplace model generating GBP 205m in net sales. This payment innovation builds on the company's strong performance in December 2024, when it reported a 65% increase in gross merchandise value to GBP 359.687 million. The introduction of flexible payment options aligns with broader industry trends, as evidenced by John Lewis's partnership with Klarna in November 2024, demonstrating how traditional retailers are adapting to changing consumer payment preferences. This development further reinforces Debenhams' position as a digital-first marketplace while enhancing its competitive edge in the evolving retail landscape.

Debenhams launches credit payment service