Need to Know
- Afterpay’s buy now, pay later technology is now available to all U.S. customers for in-store purchases.
- The company says that Afterpay customers who shop both online and in-store spend 15-20% more per transaction.
- Afterpay launched its in-store platform in Australia and New Zealand in 2016 and piloted the platform in the U.S. in July of this year.
- Initial retail partners include Forever 21, Finish Line, JD Sports, Levi’s, Skechers, Fresh, APL, and Solstice Sunglasses.
As holiday shopping season approaches, buy now, pay later company Afterpay has announced that its in-store payment platform is now available to all U.S. customers nationwide.
Afterpay, which gives shoppers the option to finance their purchases using four equal, interest-free payments, first made its in-store platform available in Australia and New Zealand in 2016 and piloted the in-store platform in the U.S. in July. Now, shoppers can use Afterpay in select retail stores using their Afterpay card, which is stored in their mobile wallet. Customers can make a purchase in-store by tapping the card icon within Afterpay’s app, which can then be used to make purchases using Apple Pay or Google Pay. Items purchased in-store using Afterpay can be taken home right away.
Afterpay’s in-store partners currently include Finish Line, JD Sports, Levi’s, Skechers, Fresh, APL and Solstice Sunglasses, as well as Forever 21, which signed up for the Afterpay pilot in July.
“We are thrilled to roll out our in-store capabilities to all customers in the U.S.—making paying in-store more convenient, secure and contactless,” Nick Molnar, Afterpay’s Co-founder and CEO of North America, said in a statement. “Afterpay customers can now choose either physical or online shopping to buy holiday gifts — which brings new customers and drives more sales conversion to retailers without any additional set-up or integration costs.”
According to Afterpay, there is a 300% increase in average order value and a 200% increase in items per transaction among shoppers who use the product. Additionally, the company reports that customers who shop both online and in-store spend 15-20% more per transaction and that those customers shop 66% more frequently than those who shop only online or only in-store.
Afterpay has been beefing up its services in recent months, as the COVID-19 pandemic resulted in an increased number of consumers who were shopping online, in addition to a spike in those who are looking for flexible financing options due to economic uncertainty. The buy now, pay later platform rolled out a loyalty program in July, to reward customers who make payments on time. Afterpay also announced a partnership with shopping malls owned by Simon, a U.S. retail property management company, last month, though it did not indicate which retailers within Simon malls would be adopting the technology.