Rakuten and Afterpay Partner to Let Shoppers Stack Cash Back Rewards with Buy Now, Pay Later

Rhea-AI Summary

Afterpay (ASX: APT) and Rakuten have partnered to enhance consumer shopping experiences by combining cash back rewards with Buy Now, Pay Later (BNPL) options. This collaboration allows customers to earn cash back while paying in four interest-free installments at various retailers like MAC Cosmetics and Anthropologie. The initiative aims to attract new customers for merchants and increase conversion rates during the holiday season. With Rakuten's $3.5 billion in cash back rewards and Afterpay's potential to save customers $459 million in fees, this partnership highlights mutual benefits for both shoppers and retailers.

Positive

• Partnership allows combining cash back with BNPL, enhancing customer shopping options.
• Expected increase in conversion rates and average order values for merchants.
• Rakuten members have earned $3.5 billion in cash back, showcasing consumer engagement.
• Afterpay's customers could save $459 million in credit card fees in 2021.

Negative

• None.

SAN FRANCISCO, Dec. 6, 2021 /PRNewswire/ -- Afterpay (ASX:APT), the leader in "Buy Now, Pay Later" payments, and Rakuten, the leading shopping rewards and cash back program, are joining forces to help consumers shop smart and spend wisely. With this partnership, retailers can combine the incentive of cash back with the flexibility and convenience of Buy Now, Pay Later to help shoppers ease the financial stress on their wallets this holiday season.

Shoppers enrolled with Rakuten and Afterpay who make purchases from participating merchants like MAC Cosmetics, Crocs, Ulta Beauty, Urban Outfitters, Anthropologie, Free People, Ugg, Ray-Ban and thousands more, will earn cash back while opting to pay over time in four, interest-free installments. In turn, the combined offering can help merchants experience benefits like higher conversion rates and average order values.

"Working with Rakuten, we are able to help consumers spend responsibly during the busiest shopping season of the year, while also providing merchants with a two-in-one solution to deliver new customers and drive higher conversion rates," said Melissa Davis, Chief Revenue Officer at Afterpay. "Heading into this holiday season, we couldn't be more excited to join forces with Rakuten for the benefit of shoppers and merchant partners alike."

Cash back and Buy Now, Pay Later are proven strategies for helping brands attract high-value shoppers and increase their sales. Bringing together Rakuten and Afterpay gives retailers the opportunity to leverage these strategies together to offer elevated incentives that deliver even higher value for savvy shoppers.

"Offering unique deals and incentives is a key strategy for driving conversions of more expensive, luxury products," said Kristen Gall, president at Rakuten Rewards. "In fact, luxury items saw an 86% sales lift over non-luxury items in a recent Cash Back promotion – showing Cash Back is universally valued, and not just by habitual coupon cutters. We're thrilled to partner with Afterpay to offer our retail and brand partners the opportunity to deliver the convenience of Buy Now, Pay Later that will help give their customers the ability to receive Cash Back on purchases immediately while paying over time, interest-free."

Rakuten is a leading shopping rewards program that offers Cash Back, deals and rewards from thousands of brands across apparel, health and beauty, dining, grocery, travel, on-demand services, subscription boxes and more. Members have earned $3.5 billion in Cash Back just for starting their shopping at Rakuten.com, in the Rakuten mobile app, or with the Rakuten browser extension. Similarly, recent findings have shown that Afterpay's U.S. customers could save up to $459m in credit card fees and interest in 2021 by making purchases with Afterpay instead of a credit card, further showcasing the value of this partnership for both consumers and merchants¹. For more information on Afterpay, please download the Afterpay app available on Android and iOS platforms, or visit afterpay.com.

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-free². The service is completely free for customers who pay on time - helping people spend responsibly without incurring interest or extended debt. 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.

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.

About Rakuten
Rakuten is a leading shopping rewards program that offers Cash Back, deals and rewards from all your favorite brands. By partnering with thousands of brands in apparel, health and beauty, dining, grocery, travel, on-demand services, subscription boxes and more, Rakuten helps members get more from the things they buy. Since its founding in 1999, Rakuten has become the largest and most rewarding shopping experience, and its members have earned $3.5 billion in Cash Back just for shopping through Rakuten. For more information, visit Rakuten.com.

Rakuten® is a registered trademark of Rakuten, Inc., registered in the U.S. and other countries. All other trademarks are property of their respective owners. © 2020 Ebates Inc. dba Rakuten. All rights reserved.

Media Contacts
Afterpay
Samantha Bonizzi
samantha.bonizzi@afterpay.com

Rakuten
Steven Shaw
steven.shaw@rakuten.com

¹ Source: Accenture US Economic Impact Report
² Late fees may apply. Eligibility criteria apply. See afterpay.com for full terms

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SOURCE Rakuten Rewards

FAQ

What is the Afterpay and Rakuten partnership about?

The partnership combines cash back rewards with Buy Now, Pay Later options to enhance shopping experiences for consumers.

How will the Afterpay and Rakuten collaboration impact shoppers?

Shoppers can earn cash back while paying in four interest-free installments, helping them manage spending during the holiday season.

Which retailers can consumers shop with to benefit from this partnership?

Retailers include MAC Cosmetics, Crocs, Ulta Beauty, and many more participating brands.

What financial savings are associated with Afterpay in 2021?

Afterpay's customers could save up to $459 million in credit card fees and interest by using their service instead of traditional credit cards.

What are the benefits for merchants from the Afterpay and Rakuten partnership?

Merchants may experience higher conversion rates and average order values, attracting more customers.