Fashion giant Asos has introduced restrictions on its buy now, pay later services for shoppers as part of its latest bid to improve profitability, Retail Week has learned.

It is understood that Asos first introduced restrictions across its buy now, pay later payment services earlier this year.

The payment services, including Klarna and Clearpay, are now not always available to every customer shopping at Asos.

The fashion retailer says it “may determine not to offer delayed payment services based on conditions of use”, as it keeps a close eye on customer behaviours including shopping history and suspected misuse.

Asos said this “targeted action” is part of its bid to improve the shopping behaviours of its “least profitable customers”.

The fashion retailer added that since the implementation of restrictions on the payment services, as well as reduced marketing contact to specific shoppers, it has seen a “positive impact” on returns rates.

This comes as the fashion retailer warned earlier today that it expects EBIT for the three months to September 3, 2023, to be “around the bottom of the guided £40m to £60m range”.

It was also reported last week that Asos is set to close the outlet department of its business, which is home to non-strategic third-party brands, as part of Asos boss José Antonio Ramos Calamonte’s previously pledged plans to reshape the business in order to “deliver profitable growth” as part of its Driving Change agenda.

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