JD Sports has joined the throng of retailers to launch pay by instalments with Afterpay, allowing shoppers to split the cost of their purchase over four payment periods, following its UK debut.

Afterpay, which is the market leader in Australia where 10% of all ecommerce sales are made using its service, launched in the UK earlier this month under the Clearpay brand and has signed up 50 brands to the service including Urban Outfitters and Smiggle.

Customers choose the Clearpay option at checkout to pay four interest-free payments every two weeks. After entering their debit or credit card details, consumers receive instant approval.

Afterpay is one of several payment disruptors pioneering ‘buy now, pay later’ options in the UK with Swedish giant Klarna and New Zealand firm Laybuy also serving the market.

Afterpay Touch Group chief executive Nick Molnar said its big point of difference is that it reduces returns as splitting the payment prevented “shopper’s remorse”.

He said the service drives down returns by around 20%.

Afterpay, which also trades in the US and New Zealand, has more than 30,000 merchants signed up globally and more than 4 million shoppers use its payment method. It works with retailers and brands such as Boohoo, Converse and Kylie Cosmetics.

Molnar said it decided to come to the UK based on demand from its retail partners: “Retailers have told us they want us to launch over here. We work with JD and Boohoo and we help boost their sales. They want to work with us in their core market.”

Molnar said the service is particular popular with young shoppers who are shunning credit cards. In the UK, one in two millennials and two in three Gen Z consumers do not own a credit card, he said.