Square Sellers Can Now Offer Buy Now, Pay Later Through Afterpay

Rhea-AI Summary

Square has launched its first integration with Afterpay, enabling 'Buy Now, Pay Later' (BNPL) functionality for Square Online sellers in the U.S. and Australia. This integration aims to help sellers attract new customers and increase revenue. Following Block, Inc.'s acquisition of Afterpay, it is expected to enhance the omnichannel growth of Square. Notably, 56% of American consumers have used BNPL services, with Gen-Z and Millennials making up 75% of users. The Afterpay service is available with no additional cost until May 10, providing sellers with instant earnings while allowing customers to pay in four installments.

Positive

• Launch of Afterpay integration expands functionality for Square sellers.
• Expected to increase average purchase sizes by nearly 20%.
• No extra cost for sellers until May 10, promoting usage and revenue generation.
• Aligns with Square's strategy to attract younger consumer segments.

Negative

• None.

SAN FRANCISCO--(BUSINESS WIRE)-- Today, Square launches its first integration with Afterpay, providing “Buy Now, Pay Later” (BNPL) functionality to sellers using Square Online for e-commerce in the United States and Australia. The integration will enable Square sellers to offer Afterpay’s BNPL experience to their customers, helping them attract new shoppers and drive incremental revenue. This product integration becomes available at the same time Block, Inc. (NYSE: SQ) announces it has completed its acquisition of Afterpay.

"Using Afterpay on our Square-powered website has been a huge boost to business,” said Jeannie & Kendall Glenn, owners of Kendall's Greek Smartwear. “Our purchases are nearly 20% larger when shoppers use Afterpay, and we receive earnings instantly in our Square account to keep our business moving. Our repeat customers appreciate the new BNPL option, especially since they can keep earning points through our Square Loyalty program, and we’ve been able to engage and convert more new customers than ever before through e-commerce.”

Nearly 56% of American consumers have used a BNPL service (source), and the fastest growing consumer segments, Gen-Z and Millennials, comprise 75% of BNPL users (source). Square sellers can now serve this growing consumer demand, including in markets like Australia, which is Square’s largest market after the U.S. and where Afterpay has very high awareness and repeat usage. Afterpay also furthers Square’s omnichannel, upmarket, and global growth.

“In joining with Square, Afterpay can now more meaningfully give small and midsize sellers the tools to attract young, engaged shoppers who prefer Afterpay and help these sellers compete alongside businesses of all sizes,” said Nick Molnar, Afterpay Co-Founder and now Afterpay Lead at Square. “And this is just the beginning. As part of Square’s powerful ecosystem, we look forward to continuing to more deeply integrate the Afterpay platform to unlock even more value for sellers across the world in the coming weeks and months.”

“We’re thrilled to offer Afterpay to Square sellers on day one. This is truly just the beginning of what we’ll be able to offer sellers, and their buyers, through this acquisition,” said Alyssa Henry, Head of Square. “Our mission is to help sellers never miss a sale, operate more efficiently, better manage cash flow, and improve growth, retention, and acquisition of buyers. Afterpay helps us further this mission. It will also help bring more businesses of all sizes into the Square ecosystem.”

Afterpay is available today to Square sellers, who can try Afterpay for no extra cost until May 10. Sellers can access Afterpay from their Square Online dashboard and opt-in to receive early access to Afterpay now, with automatic enablement rolling out to eligible Square Online sites over the following weeks. Afterpay can be easily toggled on or off via sellers’ Square Online dashboard at any time. During the promotional period, Afterpay transactions are processed at sellers’ standard e-commerce processing rates. Square sellers receive their full earnings from each sale immediately, while consumers pay over four interest-free installments. Afterpay will also soon be available on Square's developer platform and for in-person payments. For more information, merchants can contact Square sales or 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 restaurants and retail operations, versatile e-commerce tools, embedded financial services and banking products, an appointment booking platform, 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/20220131005828/en/

Media Contact

press@squareup.com

Source: Block, Inc.

FAQ

When did Square launch its Afterpay integration?

Square launched its Afterpay integration today.

What is the expected benefit of Afterpay for Square sellers?

The integration is expected to help sellers attract new customers and drive incremental revenue.

What is the promotional period for Afterpay availability to Square sellers?

Sellers can try Afterpay for no extra cost until May 10.

What are the terms of Afterpay payments for consumers?

Consumers can pay for their purchases over four interest-free installments.

What percentage of American consumers have used BNPL services?

Nearly 56% of American consumers have used a BNPL service.