Afterpay Launches New Brands as Consumers Turn to BNPL to Reduce Summer Spending Stress

Rhea-AI Summary

Afterpay has launched new brands for its Buy Now, Pay Later (BNPL) service, allowing U.S. shoppers to choose installment payments at checkout. The new merchants include Curology, Helzberg Diamonds, Journeys, Rawlings Sporting Goods, and Zenni Optical. This initiative aims to help consumers manage their budgets better during a period of high prices. According to Afterpay, BNPL was rated as an effective solution for reducing financial stress by 4 out of 5 users. The company also highlights its customer protection measures, such as freezing accounts after a missed payment and capping late fees, ensuring 98% of all purchases incur no late fees and 95% of installments are paid on time.

Positive

• New merchant partnerships with Curology, Helzberg Diamonds, Journeys, Rawlings Sporting Goods, and Zenni Optical.
• BNPL rated as an effective solution by 4 out of 5 users.
• Afterpay's customer protections include freezing accounts after one missed payment and capping late fees.
• 98% of Afterpay's Pay in 4 purchases incur no late fees.
• 95% of installments are paid on time.

Negative

• No significant financial figures or growth metrics were disclosed in the PR.
• The PR did not indicate any immediate positive impact on revenue or profitability.
• Potential consumer over-reliance on installment payments could lead to future financial instability.

Journeys, Rawlings Sporting Goods, and Helzberg Diamonds among the latest merchants to offer Afterpay at checkout

DISTRIBUTED-WORK-MODEL/SAN FRANCISCO--(BUSINESS WIRE)-- Afterpay, a leader in Buy Now, Pay Later (BNPL), announces a batch of new brands that will be available for consumers to pay in installments this summer. U.S. shoppers will be able to choose Afterpay at checkout to shop from Curology, Helzberg Diamonds, Journeys, Rawlings Sporting Goods, and Zenni Optical.

“We want to make shopping at Journeys, in store and online, as easy and convenient as possible for our customers and expanding our payment options is one of the ways we can do that. The addition of Afterpay will provide the Journeys’ customer with a new and flexible buy now pay later payment option,” said John Tighe, SVP of Digital Commerce, Journeys.

As prices remain high in many consumer categories, Americans are looking for more ways to budget and save for their summertime activities. With the ability to spread purchases out in installments, BNPL was rated by 4 in 5¹ users as an effective solution to alleviating financial stress throughout the payment journey.

“During a time when consumers are price sensitive, they need reliable payment solutions that can help them get access to the economy while stretching their money as far as they can. Afterpay can do both as a money management tool that empowers budget-conscious consumers to pay flexibly for the things they want and need across a broad range of merchants,” said Heawon Kim, Head of SMB and Mid Market Partnerships, Afterpay and Cash App.

Afterpay has customer protections built-in to the platform to prevent consumers from overextending themselves and revolving into debt such as freezing accounts after one missed payment and capping late fees. As a result, 98% of all Afterpay Pay in 4 purchases incurred no late fees and 95% of installments were paid on time.²

Download the Afterpay app on iOS and Android to get access to all available merchants.

About Afterpay

Afterpay is transforming the way we pay by allowing customers 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, where it is known as Clearpay. Afterpay is a wholly owned subsidiary of Block, Inc. (NYSE: SQ).

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¹ Morning Consult’s Afterpay Financial Sentiment Survey (May 2024) was conducted between April 26 - 30, 2024 among 2207 Adults aged 18-55 in the U.S.
² Block, Inc. Q1’24 Results

View source version on businesswire.com: https://www.businesswire.com/news/home/20240618558260/en/

Media Contact

media@afterpay.com

Source: Block, Inc.

FAQ

Which new brands are available through Afterpay for BNPL?

The new brands include Curology, Helzberg Diamonds, Journeys, Rawlings Sporting Goods, and Zenni Optical.

How does Afterpay help consumers manage financial stress?

Afterpay allows consumers to spread purchases over installments, which helps in budgeting and reducing financial stress.

What customer protections does Afterpay offer?

Afterpay freezes accounts after one missed payment and caps late fees to prevent consumers from overextending.

What percentage of Afterpay purchases incur no late fees?

98% of Afterpay's Pay in 4 purchases incur no late fees.

How timely are Afterpay installments paid?

95% of Afterpay installments are paid on time.