Square Expands Afterpay Integration to In-Person Points of Sale

Rhea-AI Summary

Square has successfully integrated Afterpay's buy now, pay later (BNPL) service for its in-person sellers in the US and Australia, enhancing payment options. Since launching this feature, sellers using Square Point of Sale have seen impressive results, including a 3x increase in average transaction sizes and a 180% spike in new consumers. Key sectors like retail and beauty registered significant sales boosts. Additionally, as part of a new strategy, Square sellers will be featured in Afterpay's Shop Directory, enhancing visibility and potential revenue growth.

Positive

• Average transaction size with Afterpay is 3x greater than non-BNPL purchases.
• 180% increase in new consumers using Afterpay through Square sellers.
• Retail businesses experienced sales increases of 17% in men's and women's clothing.
• Beauty and personal care businesses saw online sales rise by 26% in Australia and 16% in the US.

Negative

• None.

SAN FRANCISCO & SYDNEY--(BUSINESS WIRE)-- Today, Square marks another key milestone in its integration of Afterpay, extending buy now, pay later (BNPL) functionality to its millions of in-person sellers in the United States and Australia. Just three months after first bringing Afterpay into the Square ecosystem with e-commerce integration, Square and Afterpay moved swiftly to unlock the ability for sellers using any Square point of sale software – Square Point of Sale, Square for Retail, Square Appointments, or Square for Restaurants – to now offer Afterpay across online and in-person commerce.

To use Afterpay in-person, buyers simply tap to pay using a mobile wallet loaded with their virtual Afterpay card, and pay over four interest-free installments. Square sellers receive their full earnings from each sale immediately.

In their first quarter together, a combined Square and Afterpay has already proven to attract new shoppers and drive incremental revenue for sellers of all sizes. Sellers using Square Online are seeing the following impact for their businesses:

• Transaction sizes are up: Across both the US and Australia, average transaction size with Afterpay is 3x greater than non-BNPL purchases.
• Rapid growth in buyers: Globally, we observed a 180% increase in new consumers leveraging Afterpay through Square sellers between February and March 2022.
• Meaningful growth among key merchant categories:
  • In the US, retail businesses that offered Afterpay as a payments option on their website are seeing a meaningful lift in overall online sales, with men's and women's clothing stores growing 17%; specialized apparel and accessories, 15%; pet stores, 13%; sporting goods stores, 12%; and jewelry and watch shops, 10%.
  • In both countries, beauty and personal care businesses saw significant upticks in online sales, registering a 26% increase in Australia and a 16% increase in the U.S.

This growth is already extending to in-person commerce; during the beta period, average order value (AOV) for in-person Afterpay purchases more than doubled in Australia, while in the US orders averaged a 50% increase.

“More than ever, shoppers expect to be able to make purchases with their preferred method of payment,” said Leslie Babineaux, owner of Fort Worth, Texas-based A Touch of Chic Boutique. “Square has made it straightforward for a business of my size to offer Afterpay, with no additional work required on our end. Our customers are thrilled that they can use BNPL when they come in store, and in a short amount of time, we’ve already seen that shoppers spend nearly double the amount with us when purchasing with Afterpay.”

Sydney-based wedding jeweler, The Callie Corp, has seen first-hand the value that offering Afterpay via Square has had on their business: "We've been offering Afterpay on our Square Online store and have been blown away by the demand. Our average transaction sizes are up, we're acquiring more new customers, and more are returning for multiple purchases," said Rebecca McIntyre, CEO and founder of The Callie Corp. "With restrictions lifted and weddings well and truly back on, we can't wait to offer Afterpay to our customers at wedding expos and at our studio. Afterpay really helps our customers to manage their cash flow around what can be an expensive, but really special, time."

To further sales growth, Square sellers will be discoverable in Afterpay’s Shop Directory, a marketplace available both online and from the Afterpay app that showcases sellers offering Afterpay. Shop Directory supplies hundreds of millions of leads per year to sellers and gives buyers the ability to search for Square sellers near them making it easier to shop and support local small businesses.

“Adding Afterpay to Square’s in-person commerce software furthers our goal to give all sellers omnichannel tools that unlock new growth opportunities for them,” said Alyssa Henry, Head of Square. “Omnichannel isn’t just about selling across multiple channels, it’s about meeting your consumers’ shopping habits, whatever and wherever they are. Afterpay adds an omnichannel tool to our ecosystem that our sellers haven’t typically had access to. For sellers of all sizes, Afterpay has proven to be more than just a new payment method; rather it serves as an omnichannel commerce solution that can offer meaningful value and growth to sellers.”

“Our buyers are young, high-intent consumers who prefer Afterpay and quickly become repeat customers for our merchant partners,” said Nick Molnar, Afterpay Lead at Square. “Together, Afterpay and Square can help sellers of all sizes capture the next generation shopper and compete at a larger scale.”

Square sellers can enable Afterpay starting today and try BNPL at promotional rates until September 10. Automatic enablement will roll out to eligible Square sellers over the following weeks, and Afterpay can be easily toggled on or off via sellers’ Square Dashboard at any time. For more information, visit www.squareup.com/buy-now-pay-later.

About Square

Square helps sellers more easily run and grow their businesses with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurant, retail, and professional services operations, versatile e-commerce tools, embedded financial services and banking products, buy now, pay later functionality through Afterpay, staff management and payroll capabilities, and much more – all of which work together to save sellers time and effort. Millions of sellers across the globe trust Square to power their business and help them thrive in the economy. Square is part of Block, Inc. (NYSE: SQ), a global technology company with a focus on financial services. For more information, visit www.squareup.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220517005301/en/

PR contact: press@squareup.com

Source: Square

FAQ

What are the benefits of Afterpay for sellers using Square?

Sellers using Afterpay through Square enjoy higher average transaction sizes, increased visibility, and access to new consumer segments.

How has Square's integration of Afterpay impacted transaction sizes?

The average transaction size with Afterpay is reported to be three times greater compared to purchases without BNPL options.

When did Square start offering Afterpay for in-person sales?

Square began offering Afterpay for in-person sales recently, expanding on its previous e-commerce integration.

What percentage increase in new consumers used Afterpay via Square from February to March 2022?

There was a 180% increase in new consumers leveraging Afterpay through Square from February to March 2022.

What is the expected impact of Afterpay on Square's sellers?

Afterpay is expected to drive incremental revenue and attract new shoppers for Square's sellers.