Afterpay (ASX:APT), a digital platform that offers interest-free installment plans for online purchases, announced on Thursday it has teamed up with Adyen (AMS: ADYEN), a global payments platform, to offer its “Buy Now, Pay Later” (BNPL) service to retailers. The companies revealed that the first retailer to use the service is premium British footwear brand, Hunter.
According to the duo, Hunter may now offer Afterpay, known as Clearpay in the UK, without the need to take out a traditional loan or pay upfront fees or interest. The service is completely free for consumers who pay on time. Afterpay noted that with its service, retailers attracts customers who prefer to pay without incurring traditional credit-style debt, interest, or fees.
“For this reason, many retailers offering Afterpay see an average increase in conversion of approximately 22% – as well as increased basket size, higher customer satisfaction and repeat customers. Around 90% of Afterpay transactions are made with debit cards.”
Speaking about the service, Bryony Longden, senior eCommerce manager for Hunter, further explained that the company wanted to offer customers more flexibility through payments.
“By offering Afterpay through Adyen, we were able to implement this new payment method quickly and effectively to offer a seamless checkout experience. The ability to split payments really helps to make higher price point items accessible to our customers.”
As previously reported, 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.
Afterpay now has more than 13 million customers globally and 1.6 million shoppers in the UK.