Afterpay Expands Service to Largest Online Brands

Rhea-AI Summary

Afterpay (ASX: APT) has expanded its 'Buy Now, Pay Later' services to include major U.S. retailers such as Amazon, CVS, and Nike, among others. This move targets a substantial portion of the U.S. ecommerce market, which has seen significant growth during the pandemic, including a 39% increase in Q1 2021. Customers can shop through Afterpay's app, utilizing a seamless checkout process with a one-time card. The company currently serves nearly 86,000 retailers and boasts over 17 million customers in North America.

Positive

• Expanded services to include major U.S. retailers such as Amazon and CVS.
• Taps into nearly half of U.S. ecommerce volume, potentially boosting transactions.
• Record-breaking online sales growth of 39% in Q1 2021 enhances market potential.

Negative

• None.

SAN FRANCISCO, June 23, 2021 /PRNewswire/ -- Afterpay (ASX:APT), the leader in "Buy Now, Pay Later" payments, today announced that it's making its service available to select app customers at the most popular and largest merchants in the United States, including Amazon, CVS, Dell, Kroger, Macy's, Nike, Nordstrom, Nordstrom Rack, Sephora, Target, Victoria's Secret, Walgreens and Yeti. These merchants represent almost half of all U.S. ecommerce volume.

Available only through the Afterpay app, select customers can shop at merchants by simply choosing their favorite brand in the Afterpay Shop Directory and paying with Afterpay. Customers enjoy all the same benefits of using Afterpay, including the ability to pay over time without having to pay interest or finance charges.

When select app customers use Afterpay to make a purchase from Amazon, CVS, Dell, Kroger, Macy's, Nike, Nordstrom, Nordstrom Rack, Sephora, Target, Victoria's Secret, Walgreens, and Yeti, Afterpay uses a one-time card to facilitate the purchase. The payment details are automatically populated at checkout, ensuring a seamless checkout experience.

U.S. ecommerce growth nearly tripled in the first three months of 2021 compared to a year ago, as more consumers shopped from the comfort of their home.  Online sales soared a record-breaking 43.7% in 2020 and grew 39.0% in Q1 2021, the second-highest pandemic period increase behind the Q2 2020 peak¹.

"Over the past year, we all relied on online shopping for the things we needed during the pandemic. But, as we celebrate the physical re-opening of stores, consumers still want the convenience and flexibility of buying with the click of a mouse as part of their 'new normal'," said Zahir Khoja, General Manager of Afterpay North America. "We are thrilled to continue to support our customers by allowing them to shop every day at their favorite brands with Afterpay for things they need and want in their lives."

The vast majority of Afterpay customers start their shopping journey on the Shop Directory in  the Afterpay app. On a monthly basis, Afterpay sends approximately 31 million leads² on average to its merchant customers from its Shop Directory.

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 time - helping people spend responsibly without incurring interest, fees or extended debt. As of March 2021, Afterpay is offered by nearly 86,000 of the world's favourite retailers and has more than 17 million customers in North America alone³.

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 2021 US Commerce figures
² Results announced in Q3 2021
³ Results announced in Q3 2021

 

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SOURCE Afterpay

FAQ

What new merchants are partnering with Afterpay (AFTPY)?

Afterpay has partnered with major U.S. retailers including Amazon, CVS, Dell, and Nike.

What is the impact of Afterpay's service expansion on U.S. ecommerce?

Afterpay's expansion targets almost half of U.S. ecommerce volume, capitalizing on significant growth trends.

When did Afterpay announce its service expansion?

Afterpay announced its service expansion on June 23, 2021.

How does Afterpay's 'Buy Now, Pay Later' service benefit customers?

Customers can enjoy interest-free payments over four installments, promoting responsible spending.