Afterpay Debuts "Buy Now, Pay Later" Subscriptions In the U.S.

Rhea-AI Summary

Afterpay (ASX:APT) has launched a new subscription payment solution in the U.S., allowing consumers to pay for recurring purchases in installments. Key merchants such as IPSY and BoxyCharm will be among the first to adopt this feature, aiming to enhance customer flexibility. The subscription market is projected to reach $1.5 trillion by 2025, indicating significant growth potential for Afterpay's offerings. Additionally, merchants can now allow Afterpay for pre-ordered items, providing a flexible payment option for customers. This initiative is set to expand into other regions, enhancing Afterpay's market presence.

Positive

• Launch of subscription payment solution targeting a potential $1.5 trillion market by 2025.
• Partnerships with popular merchants like IPSY and BoxyCharm enhance brand visibility.
• Expansion plans include international markets such as Canada, New Zealand, and Europe.

Negative

• None.

SAN FRANCISCO, Nov. 24, 2021 /PRNewswire/ -- Afterpay (ASX:APT), the leader in "Buy Now, Pay Later" payments, today announced its subscription solution - giving U.S. consumers the ability to pay for their favorite recurring purchases in installments.  Merchants including IPSY, BoxyCharm, Savage X Fenty and Fabletics will be amongst the first to offer Afterpay's subscription payments, which will be available to customers early next year.

Subscription payments are already driving significant value for merchants and brands across the world - with the market predicted to be a $1.5 trillion industry by 2025, according to UBS.¹ This new offering allows qualified merchant partners to potentially offer Afterpay for popular, every day payment needs including gym memberships, entertainment subscriptions, online services and more. Afterpay also accommodates almost any merchant's billing cadence - ensuring an efficient checkout and auto-renewal process for consumers.

"We believe this new partnership with Afterpay will further advance our mission of making beauty more inclusive by providing even more flexibility and greater access to BoxyCharm and IPSY, and by openly welcoming Afterpay's highly engaged customers to our beauty community," said BFA Industries' VP of Corporate Development & Strategic Partnerships, Milagros Pinon. "Afterpay already has a high affinity with our Charmers and Ipsters and we are incredibly excited to partner with them in building out their subscription offering."

Zahir Khoja, General Manager of North America for Afterpay said: "By offering customers the option to pay for subscriptions with Afterpay, we're not only giving consumers flexibility to pay for more expensive monthly costs, but we're also helping our merchant partners capture a wider consumer base through this convenient experience. As more retailers expand into the world of subscriptions, Afterpay is more than ready to answer the call for both customers and merchants."

Afterpay's subscriptions will be available to consumers across online platforms in the U.S. and Australia by early 2022, with plans to extend this feature in-store and to other regions including Canada, New Zealand, the U.K. and Europe.

Pre-orders
Also starting today, merchants can offer their customers the ability to use Afterpay on pre-ordered items. This approach supports merchants with longer lead shipping times, while giving consumers the flexibility to pay for their pre-ordered item in four installments over time, once the item ships. In the near future, merchants will also have the flexibility to take deposits on custom items from Afterpay customers.  

For the latest merchant offerings, please visit www.Afterpay.com/en-US/for-retailers.

About Afterpay Limited
Afterpay Limited (ASX: APT) is transforming the way we pay by allowing customers to buy products immediately and pay for their purchases over four installments, always interest-free.² The service is completely free for customers who pay on time - helping people spend responsibly without incurring interest. As of June 30, 2021, Afterpay is offered by nearly 100,000 of the world's favorite retailers and nearly 20 million customers have signed up in North America alone.³

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 on a mission to power an economy in which everyone wins.

¹ Source: UBS Digital Subscription's Report. 2021 May
² Late fees may apply. Eligibility criteria apply. See afterpay.com for full terms.
³ Figures released in FY 2021 results

 

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SOURCE Afterpay

FAQ

What new services did Afterpay introduce on November 24, 2021?

Afterpay launched a subscription payment solution allowing U.S. consumers to pay for recurring purchases in installments.

Which merchants are partnering with Afterpay for subscription payments?

Merchants including IPSY, BoxyCharm, Savage X Fenty, and Fabletics will initially offer Afterpay's subscription payments.

What is the projected market size for subscription payments by 2025?

The subscription payment market is projected to reach $1.5 trillion by 2025, according to UBS.

When will Afterpay's subscription payments be available to consumers?

Afterpay's subscription payments will be available to U.S. consumers by early 2022.

What other features did Afterpay announce alongside subscription payments?

Afterpay also announced that merchants can offer payment options for pre-ordered items, enabling installment payments for customers.