Afterpay (ASX:APT), which claims to be a leader in “Buy Now, Pay Later” (BNPL) payments, introduced a new payment solution that gives consumers even more choice, flexibility and time “to pay, with transparent terms to support responsible spending – just in time for the busy holiday shopping season.”
Consumers who select Afterpay’s monthly payment option “can budget their money over a six or twelve-month period for purchases between $400 and $4,000 with consumer-friendly payment terms” including:
- No late fees
- No compounding interest with a cap on total interest owed
- A clear view of what is owed at time of purchase which won’t increase during the course of the payment plan
Designed for purchases between $400 and $4,000, merchants can now “offer Afterpay for more items in more categories without paying additional transaction fees or integration costs – while benefiting from new customer growth, increased sales, and higher average order values.”
Initially offered to existing customers making online purchases, the monthly payment solution will “be available for in-person purchases in 2023.”
Lee Hatton, head of Cash App Asia Pacific, said:
“Our new offering is a natural extension of the Afterpay experience – giving customers a new way to take more control and have more choice in the way they pay. We look forward to supporting customers with yet another smart budgeting tool.”
Starting today, consumers can use Afterpay’s monthly payment option at US merchant websites, including Bellacor.com, EyeBuyDirect, FWRD, and Your Mechanic, among others, “with additional merchant partners coming soon.” The company plans “to extend the offering to merchants outside the U.S. in 2023.”
Afterpay gives consumers “the ability to use their own money and pay over time without having to turn to expensive credit cards, which can lead to revolving and compounding debt.”
Built from the ground up to help consumers pay responsibly, “more than 98% of Afterpay transactions never incur a late fee, and more than 90% of Afterpay transactions are paid with a debit card.”
Since 2020, US consumer spending on BNPL “has increased 660 percent3. This is more than five times the rate of growth for debit card spending (43 percent) and credit card spending (8 percent).”
Afterpay’s monthly payment option is “offered to existing customers in partnership with First Electronic Bank, Member FDIC.”
