Afterpay and Adyen Partner to Deliver Flexible Payments

Rhea-AI Summary

Afterpay (ASX:APT) and Adyen (AMS:ADYEN) have partnered to offer Afterpay's 'Buy Now, Pay Later' service, starting with the British brand Hunter. This collaboration aims to enhance payment flexibility for customers, allowing them to pay in four interest-free installments. With over 13 million global users, Afterpay reported that retailers using its service often see a 22% increase in conversion rates. Merchants can now offer Afterpay in the UK, US, Canada, Australia, and New Zealand, marking a significant expansion in payment options.

Positive

• Partnership with Adyen to enhance payment flexibility.
• Over 13 million global customers and increasing retailer adoption.
• Average 22% increase in conversion for retailers offering Afterpay.

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• None.

SAN FRANCISCO, April 8, 2021 /PRNewswire/ -- Afterpay (ASX:APT) the leader in "Buy Now, Pay Later", and Adyen, (AMS: ADYEN), the global payments platform of choice for many of the world's leading businesses, are joining forces to offer Afterpay's leading "Buy Now, Pay Later" (BNPL) service to retailers, kicking off with Hunter, the premium British footwear brand.

Leading iconic British outdoor lifestyle brand, Hunter, is among some of the first retailers to offer Afterpay with Adyen.

"We wanted a way of offering our customers more flexibility through payments, as we know giving our customers choice to pay in a way that suits them drives on-site conversion" said Bryony Longden, senior eCommerce manager for Hunter. "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. "

Hunter can now offer Afterpay, known as Clearpay in the UK - the popular service which allows customers to get their items right away and pay in four installments, 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 time¹. Afterpay now has more than 13 million customers globally and 1.6 million shoppers in the U.K.²

With Afterpay, retailers attract a growing segment of the population 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.³  Around 90% of Afterpay transactions are made with debit cards.⁴

"BNPL has changed the retail industry - as young shoppers prefer to use their own money to buy items they need and want - instead of using credit cards which often lead to revolving debt with interest and fees," said Ben Pressley, SVP of Global Sales Strategy and Operations at AfterPay. "We are so excited to kick off our partnership with Adyen and Hunter to offer a payment solution that delivers real benefits to consumers and retailers alike."

Merchants of Adyen can offer Afterpay in the UK, the United States, Canada, Australia and New Zealand to their customers.

About Adyen
Adyen (AMS: ADYEN) is the payments platform of choice for many of the world's leading companies, providing a modern end-to-end infrastructure connecting directly to Visa, Mastercard, and consumers' globally preferred payment methods. Adyen delivers frictionless payments across online, mobile, and in-store channels. With offices across the world, Adyen serves customers including Facebook, Uber, Spotify, Microsoft, Casper, Bonobos and L'Oréal. The support of Afterpay and Hunter as described in this update underlines Adyen's continuous expansion of supported payment methods and continuous growth with current and new merchants over the years.

About Afterpay Limited
Afterpay Limited (ASX: APT) is transforming the way we pay by allowing customers to receive products immediately and pay for their purchases over four installments, always interest-free. The service is completely free for customers who pay on time⁵  - helping people spend responsibly without incurring interest, fees or extended debt. As at December 31, 2020 Afterpay is offered by nearly 74,000 of the world's favourite retailers, and is used by more than 13 million active customers globally.  

Afterpay is currently available in Australia, Canada, New Zealand, the United States and the United Kingdom, where it is known as Clearpay. Afterpay is on a mission to power an economy in which everyone wins.

¹ Late fees may apply. Eligibility criteria apply. See afterpay.com for full terms.

² As at 31 December 2020. Further infocmation can be found at https://corporate.afterpay.com/investors/asx-announcements

³ More information can be found at https://www.afterpay.com/for-retailers

⁴  Based on company data, 31 December, 2020.

⁵  Late fees may apply. Eligibility criteria apply. See afterpay.com for full terms.

 

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SOURCE Afterpay

FAQ

What is the partnership between Afterpay and Adyen about?

Afterpay and Adyen are partnering to integrate Afterpay's 'Buy Now, Pay Later' service into retail platforms, starting with the Hunter brand.

How does Afterpay benefit retailers?

Afterpay helps retailers increase conversion rates by approximately 22%, allowing customers to pay in four installments without interest.

Which regions can merchants offer Afterpay services?

Merchants can offer Afterpay in the UK, US, Canada, Australia, and New Zealand.

What is the customer base for Afterpay?

Afterpay has over 13 million active customers globally, with 1.6 million in the UK.