Consumers who select Afterpay’s monthly payment option can budget their money over a six- or twelve-month period for purchases between USD 400 and USD 4,000 with consumer-friendly payment terms, including no late fees, no compounding interest with a cap on total interest owned, and a clear view of what is owed at time of purchase.
Designed for purchases between USD 400 and USD 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.
Starting October 2022, 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 to come. The company plans to extend the offering to merchants outside the US in 2023.
The BNPL provider 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 its transactions are paid with a debit card. The company’s monthly payment option is offered to existing customers in partnership with First Electronic Bank, member FDIC.
Since 2020, US consumer spending on BNPL has increased 660%. This is more than five times the rate of growth for debit card spending (43%) and credit card spending (8%), according to the press release.
For more information about Afterpay, please check out the company profile in The Paypers Company Database.
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