Putting further pressure on credit cards, AfterPay now offers support for Apple Pay and Google Pay in select US retailers starting in July 2020. The Australian-based mobile app that offers “Buy Now, Pay Later” (BNPL) installment options, AfterPay is offering Apple Pay online and in physical stores and Google Pay as an in-store option in the U.S.
Despite paying a fee to Apple and Google to allow its installment payments to be made via their smartphone digital wallets, AfterPay’s costs of rolling out to new merchants are still reduced. The deal will also help drive customer adoption. Allowing customers to complete payment in four installation payments, AfterPay does not charge upfront fees or interest, similar to AfterPay online.
AfterPay In-Store Tap and Pay
At the point of sale terminal, customers can tap the card icon in the AfterPay app to activate the AfterPay card in the Apple wallet. Among the first retailers to offer Apple Pay with AfterPay, Forever 21, Skechers, Fresh, and Solstice Sunglasses are participating in the rollout. Operating in Australia, New Zealand, and the U.S., AfterPay operates under the name ClearPay in the U.K.
Introduced four years ago in Australia and New Zealand, AfterPay’s in-store offerings comprised 24 percent of total sales with nearly 40,000 shops offering the service. AfterPay is offered by more than 55,000 retailers across the globe with nearly 10 million active users.
BNPL Increasingly Popular Due to COVID-19
Thanks to COVID-19, BNPL companies are soaring in popularity. Consumers looking to stretch their dollar are hoping to buy time until incomes are restored in the wake of a reeling economy. With a clear aversion to financial risk, millennials have been shifting away from credit cards since 2009. Avoiding credit card interest and fees, consumers are not only leaning on BNPL platforms but also on debit cards, as well.
“As we enter the second half of the year and retail re-emerges across the world, its critical we help our partners drive business growth,” both online and offline,” Nick Molnar, co-founder and U.S. CEO at AfterPay, said in the press release. “As a proven solution for driving incremental sales and new customer growth, we are thrilled to introduce our new omnichannel solution to U.S. retailers as they begin to open their doors and bring shoppers back to their physical stores.”
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