Afterpay, a digital platform that offers interest-free installment plans for online purchases, announced on Wednesday it has joined forces with Stripe to offer buy now, pay later payment services for merchants.
According to Afterpay, the partnership allows both new and existing Stripe merchants to offer Afterpay options. This gives the merchant’s shoppers the opportunity to receive their items immediately and pay in four installments, without the need to take out a traditional loan or pay upfront fees or interest.
“By offering Afterpay, Squarespace enables merchants to build a fully integrated checkout experience with ease, while maintaining the look and feel of their brand. Merchants will also experience the benefits of offering customers a flexible payment option, which is proven to attract new customers and deliver higher conversions and average order values.”
Speaking about the partnership, Noah Pepper, Stripe’s Business Lead for APAC, stated:
“We’ve seen strong demand from users around the world for flexible payment options, and this partnership gives businesses on Stripe an effective tool for capturing more sales and reaching new customers.”
Ben Pressley, Afterpay’s SVP of Global Sales Strategy and Operations, went on to conclude:
“Millennial and Gen Z consumers are demonstrating a clear preference for flexible payment options that allow them to budget and spend responsibly. By partnering with Stripe and Squarespace, we’re equipping retailers with the tools to meet this consumer demand – offering the younger generation a way to use their own money and pay over time, always free of interest.”
Afterpay was founded in 2015 and 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. Since launching in the U.S., Afterpay has processed more than 25% of all online fashion/beauty transactions. Afterpay recently announced it launched its services in Australia and Canada.