Rockstar Original’s $3 Million Success Story: Embracing Afterpay and Cash App for Gen Z Appeal

July 10, 2024USA
  • Business Type

    Fashion Apparel

  • Company Size

    Premium SMB

  • Key Products Used

    Afterpay Pay-in-4; Cash App Pay

Rockstar Original has enabled Afterpay and Cash App Pay to help service its cohort of next-gen shoppers who are seeking more choice and flexibility at checkout, which has led to strong ROI for the apparel company.

$3 million

Generated Revenue Combined

10x

Estimated Return on Investment

To improve the shopping experience, Rockstar Original enables a diverse set of payment options to meet next-gen shopper needs

Rockstar Original embraces its shoppers and the unique qualities that each one brings to the table. The philosophy behind the streetwear brand, which is known for its bold statement pieces sold at affordable prices, is to always stay true and remember your roots. As a way of connecting with its diverse customers—most of whom are young and hail from urban areas—the direct-to-consumer brand offers a diverse array of payment options, including Afterpay and Cash App Pay. 

“Technology is changing the e-commerce landscape right now. We’re a smaller company, and so we definitely want to be involved with new payment options that are leading the space”Edwin Kim, VP of E-commerce, Rockstar Original

Kim says this strategy has helped fuel growth for the brand. In fact, since the start of 2024, Rockstar Original has generated nearly $3 million in total revenue and orders combined through Afterpay and Cash App Pay. 

How younger shoppers are buying now and paying later

When Kim considers what Rockstar Original shoppers want, some defining features come to mind. “They’re primarily looking for quality streetwear apparel at an affordable price,” he says. “Because Rockstar Original started as a high-end denim company, quality is a big focus and so is design.” Plus, he adds, the majority of shoppers (90% to 95%) live in urban areas and are most commonly Gen Z and Millennials.

 

In 2022, Rockstar Original already offered two options for shoppers to buy now, pay later (BNPL) and was interested in adding a third choice. Variety is something consumers are in favor of, with more than half (56%) of BNPL users saying they use more than one BNPL brand, according to Afterpay’s Financial Settlement Survey conducted by Morning Consult (broken down by generations, that includes 67% Gen Z, 55% Millennials and 53% Gen X respondents). Kim recalls that a number of competitors had enabled Afterpay, and customers had also requested it. “After speaking to the Afterpay team, we decided it was a good market fit,” he says. 

There’s a lot of overlap between Afterpay users and Rockstar Original shoppers.  The Future of Commerce research by Square found that for many Gen Z individuals, BNPL is the preferred method of shopping, and 44% have used that option in the last 12 months. The combined use of Afterpay among Gen Z and Millennials has grown an average of 22% year-over-year, as more discover the convenience of this payment option. 

More recently, Kim says he’s collaborated with the Afterpay team on marketing initiatives involving newsletter mentions and social media posts, which have earned new Rockstar Original customers. He believes it’s been a good partnership with strong adoption.  Based on results seen in other Afterpay partnerships, it is estimated that Rockstar Original’s return on investment is around 10x¹ through a higher average order value and new customers.

Shopping on the go

Kim knew that Rockstar Original’s core customers were avid Cash App users, so it was an easy decision to enable Cash App Pay as another choice at checkout.

“With a lot of the younger generations, the shopping experience is just much easier to do on your phone these days, I felt like it was a no-brainer.”Edwin Kim, VP of E-commerce, Rockstar Original

 

Again, adoption was immediate and sustained. “Among all of our payment options it’s been highly used among our customers,” he says. Since it was enabled in January of 2024, the company has seen over 10,000 Cash App Pay orders with 90% coming from Gen Z and Millennial users.

Looking ahead, Kim says that he expects continued changes in the financial technology and payments space. And as a small business, he adds, Rockstar Original will keep evolving with the times, offering more payment options so customers are empowered to decide how and when they want to make purchases.  

“If we’re not offering those payment options, I feel like it’s a missed opportunity for the brand.”Edwin Kim, VP of E-commerce, Rockstar Original

  1. ROI is calculated by estimated incremental sales Afterpay has delivered based on customer acquisition and AOV uplift, then considering this in relation to Afterpay’s incremental fees. This estimate has been verified by the merchant.

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