Buy Now, Pay Later Breaks Through and Afterpay Leads the Charge
Shop Eat Surf recently sat down with Afterpay to learn more about their products and services.
Why was Afterpay started?
Afterpay started as a way to help consumers manage their budgets responsibly by allowing them to receive products immediately, while paying over six weeks, without the need to take out a traditional loan, pay upfront fees or interest.
What kind of background do the company founders have?
Afterpay’s co-founders both started off in Australia. Nick’s background is in retail and sales, while Anthony’s background is in finance and technology.
How does it work? Are retailers paid for the whole order up front?
Afterpay flips the traditional credit model on its head, giving customers the flexibility to buy now and pay later while receiving their favorite fashion and beauty items upfront. Retailers are paid upfront for consumers orders.
What sort of adoption rates do you see by shoppers?
In the US, Afterpay has the largest active customer market with more than 3.6 million active customers. Over 1 million of those customers were acquired during the 2019 holiday shopping season.
How do you decide who is credit worthy?
Afterpay has its own proprietary system for reviewing customers before they are approved to use our services. It’s important to note that Afterpay never checks customers’ credit scores or uses credit bureaus when they use our platform.
Who are some of the big retailers who use Afterpay?
Afterpay partners with a wide range of retailers – many brands that are beloved by millennials and Gen Z have chosen to offer Afterpay to their customers. Some include: Anthropologie, Bandier, Billabong, DSW, GOAT, Levi’s, Pacsun, Ray-Ban, REVOLVE, Steve Madden, and Urban Outfitters, among others. A full list of brand partners can be found on our shop directory here.
How much does the service cost?
Afterpay is a completely free product for customers that pay on time.
What is involved in implementing the service
The integration process differs based on each of our retailer’s e-commerce platforms. Regardless of the retailer platform, the team is always very hands-on when we help merchants launch Afterpay.
What makes Afterpay unique in its field?
Unlike credit card companies and other competitors, which make significant profits from customers paying interest and late fees, with Afterpay, customers are not required to take out a traditional loans, or pay any upfront fees or interest. The company’s business model is based on revenues paid to Afterpay by retailers. In fact, Afterpay earns more money when customers pay on time.
What are the benefits to the retailer?
Retailers offering Afterpay benefit from:
- Increased conversion rates
- Increased basket sizes
- Lower return rates—offering Afterpay leads to less buyer’s remorse and better value for customers
- Increased referrals through the Afterpay platform—in the U.S., there are approximately 4-5 million monthly referrals from the company’s online Shop Directory
In addition, approximately 90% of Afterpay users are returning customers, indicating very high customer satisfaction, which helps retailers deepen brand loyalty and increase customer lifetime value.
To learn more about Afterpay, visit https://www.afterpay.com/for-retailers.