As consumers look to furnish their homes or plan their next holiday, they can shop and flexibly pay over time from thousands of new merchants
Just in time for summer, Afterpay has scaled its Pay Monthly product to thousands of new merchants, offering eligible consumers the opportunity to be more flexible with splitting their next premium product or vacation over a six or twelve month period.1 This comes at a pivotal time as recent graduates and home owners look to furnish their new spaces, and travelers consider how to budget for their summer vacations.
Afterpay first introduced its monthly payment solution during the fall of 2022 and it has grown widely in adoption by both consumers and merchants alike. Consumers have enjoyed more choice in how they pay and budget for their expenses, where the number of Afterpay consumers actively using the solution has increased by 3x2 when analyzed between December 2022 to May 2023. Compared to traditional Buy Now, Pay Later (BNPL), merchants have also benefited from increased sales and higher average order values.
Leading home retailers offering Afterpay’s Pay Monthly product to consumers online include Brooklinen, Caraway Home, Lulu and Georgia, Ruggable, Sur La Table, and more. As for travelers, they can split their monthly purchases at partners such as Alternative Airlines and Expedia. Besides home and travel, consumers can also use Afterpay for other higher price categories such as jewelry, luxury fashion, and petcare.
“As Afterpay’s first major U.S. travel partner, Expedia Group is excited to see the expansion of the Pay Monthly product to include even more options for travelers looking to book their dream trips,” said Julia Merritt, Director of Business Development, Strategic Partnerships and Affiliates, Expedia Group. “We’re happy that our cutting-edge traveler technologies help our partners provide flexible, seamless experiences for their customers.”
“During the course of the past year, we’ve seen rapid adoption of Afterpay’s Pay Monthly monthly payment solution from our network of highly-engaged consumers embracing it for purchases on their home, travel, and experiences. This product not only affords people with the buying power they’re looking for when it comes to high value orders, but it has also contributed meaningfully to our merchant partners’ bottom lines as well," said Salim Tarazi, Head of Product, Afterpay at Cash App.
Monthly Payments can be used by eligible customers for purchases between $400 and $4,000,3 with consumer-friendly payment terms, including: no late fees, no compounding interest with a cap on total interest owed, and a clear view of what is owed at the time of purchase. Next month, Square sellers will also be able to offer Afterpay’s Pay Monthly product through Square Invoices, giving consumers the option to flexibly pay for larger invoices over a six or twelve month period.¹
With consumer protections and visible spending limits in place, Afterpay was built to enable responsible customer spending and stopping consumers from revolving into debt. The Afterpay platform uses soft credit checks4 to customize spending limits so consumers spend within their means – creating a healthier and more responsible customer base. This effort is reflected in how often Afterpay customers make their payments on time. Nearly 90%5 of Afterpay monthly installments were paid on time and 95%6 of Afterpay bi-weekly installments were paid on time.
For more information on Afterpay’s Pay Monthly product and other top brands consumers can shop with, visit https://www.afterpay.com/en-US/pay-monthly.
About Afterpay Limited
Afterpay is transforming the way we pay by allowing anyone to buy products immediately and pay over time - enabling simple, transparent and responsible spending. We are on a mission to power an economy in which everyone wins.
Afterpay is offered by thousands of the world’s favorite retailers and used by millions of active global customers. Afterpay is currently available in Australia, Canada, New Zealand, the United States and the United Kingdom, France, Italy and Spain, where it is known as Clearpay. Afterpay is a wholly owned subsidiary of Block, Inc. (NYSE: SQ).
1 You must meet eligibility criteria to qualify. Loans through the Afterpay Pay Monthly program are underwritten and issued by First Electronic Bank, Member FDIC. Loans are subject to credit check and approval and are not available to residents of Hawaii, New Mexico, West Virginia and Nevada. Click here for complete terms.
2 Afterpay data analyzed between Dec 1, 2022 - May 31, 2023
3 Amount may vary depending on merchant
4 Afterpay terms of service
5 Afterpay data analyzed between March 2022 and June 2023
6 Block Q1’23 results