Afterpay, a digital platform that offers interest-free installment plans for online purchases, announced on Wednesday its launch into the U.S. Named as one of Australia’s fastest growing fintech companies by IDC, initial retailers integrating its “buy-now, pay-later” platform includes popular fashion and lifestyle retailer Urban Outfitters, Inc., and its portfolio of global brands including Urban Outfitters, Anthropologie, and Free People.
Afterpay, which was founded in 2015, reported its platform has grown to include more than 14,000 Australian retailers and brands including Sephora, Estee Lauder, Lululemon, Myer, The Daily Edited, and Stylerunner. With more than 1.8 million Australian customers to date, Afterpay processes more than 25% of all online fashion/beauty transactions. Afterpay listed on the Australian Securities Exchange in May 2016. While sharing details about the U.S. expansion, Nick Molnar, Founder and CEO of Afterpay, stated:
“Afterpay helps shoppers get over that initial price hurdle by offering a platform to help budget for things that they want without needing to take out a loan or open a credit card. This is particularly relevant for millennials who are reluctant to use credit cards and other forms of traditional finance. The service is also appealing to retailers and brands as it helps to increase conversion rates and incremental sales by 20-30%. We are excited to be bringing our platform to the U.S. and launching with Urban Outfitters, an iconic brand group that shares our innovative DNA and drive to deliver great experiences for customers.”
Afterpay noted that through its platform shoppers are able to receive products immediately and pay for them in four, interest-free installments and are not required to enter into a traditional loan or pay any upfront fees or interest. Afterpay assumes all non-payment risk on behalf of retailers and the platform integrates easily with merchants’ existing infrastructure. Dave Hayne, Chief Digital Officer at Urban Outfitters, Inc., added:
“We look forward to launching Afterpay across our portfolio of brand websites in the US market, beginning with Urban Outfitters this week. Preliminary tests in the US have shown promise, and based on the success Afterpay has seen in Australia, we have reason to believe our US customers will embrace this innovative new payment solution.”