Rite Aid and Afterpay Partner to Offer ‘Buy Now, Pay Later’ on Everyday Items

Rhea-AI Summary

Rite Aid has partnered with Afterpay, becoming the first national drugstore chain to offer their 'Buy Now, Pay Later' (BNPL) service. This allows customers to purchase household essentials online and pay in four installments without extra fees when paid on time. Approximately 39% of consumers are using BNPL services more frequently due to recent economic pressures. Rite Aid plans to expand this service to its physical locations soon, targeting a younger demographic consisting mainly of Gen Z and Millennials.

Positive

• Partnership with Afterpay enhances customer payment flexibility, reflecting a trend in consumer financing.
• Expected increase in online sales driven by accessibility to younger, digitally-native consumers.

Negative

• Limited to non-prescription purchases, potentially limiting its overall impact on sales.

Rite Aid becomes the first national drugstore chain to offer Afterpay’s flexible payment solution to shop online and pay later for household necessities from health and beauty to baby care and grocery

SAN FRANCISCO--(BUSINESS WIRE)-- Afterpay, the leader in "Buy Now, Pay Later" (BNPL) payments, and trusted care retailer Rite Aid (NYSE: RAD) announced their partnership today, offering Rite Aid’s online shoppers a new way to pay for everyday items in four installments at no additional cost when you pay on time. This partnership will help customers access and spend responsibly on everyday goods with Afterpay’s powerful budgeting tool.

“Our relationship with Rite Aid, and expansion into drugstore e-commerce, comes at a time of increased shopper demand to pay over time. Approximately 39%¹ of consumers have indicated using BNPL more due to the pandemic and inflation,” said Zahir Khoja, General Manager of Global Platforms and Partnerships at Afterpay. “By expanding our platform and services to new everyday spend retailers, we can continue to help consumers unlock access to daily necessities while managing their budgets.”

“As a trusted destination for the healthcare needs of our communities, we are committed to providing our customers with offerings that make it easier for them to obtain the products they need to support their whole health,” said Justin Mennen, Chief Digital and Technology Officer for Rite Aid. “Our new partnership with Afterpay is another way we are leveraging technology to improve the customer experience and the overall health and wellness of our communities.”

Rite Aid will offer Afterpay on purchases made online at www.RiteAid.com and plans to roll out its flexible payment option in stores nationwide in the coming months. Customers can apply Afterpay to any purchase made online with the exception of prescription drugs or products that require a health provider prescription. With nearly 70%² of Afterpay’s highly-engaged network of digitally-native Gen Z and Millennial customers, Rite Aid can expect to see a new generation of consumers shopping online using BNPL.

Over 19 million active customers use Afterpay at more than 122,000 of the world’s favorite retailers to purchase the things they want and need without turning to expensive loans.⁴ To learn more about the way Afterpay has transformed the way consumers shop - both online and in-stores at the best brands around the world - please visit newsroom.afterpay.com.

About Rite Aid Corporation

As the trusted, everyday care connector, Rite Aid drives lower health care costs through better coordination, stronger engagement, and personalized services that help you achieve whole health for life. We provide an array of whole being health products and services for the entire family through approximately 2,450 retail pharmacy locations across 17 states. Through Elixir, we provide pharmacy benefits and services to millions of members nationwide. For more information, visit www.riteaid.com.

About Afterpay Limited

Afterpay is transforming the way we pay by allowing customers to buy products immediately and pay for their purchases over four installments.³ The service is completely free³ for customers who pay on time - helping people spend responsibly. As of December 31, 2021, Afterpay is offered by more than 122,000 of the world’s favorite retailers and more than 19 million active customers have adopted the service.⁴

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. Afterpay is a wholly owned subsidiary of Block, Inc. (NYSE: SQ).

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¹ Source: Coresight x Afterpay, The Inflation Pressure Cooker: How North American Consumers Are Responding, April 2022
² Source: Accenture x Afterpay, Next Gen Index, Feb 2022
³ Late fees may apply. Eligibility criteria apply. See afterpay.com for full terms.
⁴ Figures released in Block Q4 2021 results

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503005184/en/

Daphne Duong

dduong@squareup.com

Terri Hickey

terri.hickey@riteaid.com

Source: Block, Inc.

FAQ

What does the partnership between Rite Aid and Afterpay entail?

Rite Aid will allow online shoppers to use Afterpay to pay for purchases in four installments without additional fees, except for prescription items.

How has consumer behavior changed regarding payment options?

Approximately 39% of consumers are using Buy Now, Pay Later services more frequently due to recent economic conditions.

When will Afterpay be available in Rite Aid stores?

Rite Aid plans to roll out Afterpay in its physical locations nationwide in the coming months.

What is the target demographic for Rite Aid's Afterpay service?

The service primarily targets Gen Z and Millennial consumers, who represent nearly 70% of Afterpay's user base.

What types of products can be purchased using Afterpay at Rite Aid?

Afterpay can be used for online purchases of everyday items, but not for prescription drugs.