Afterpay’s New Payment Solution Gives Customers More Ways to Pay
As shoppers start to prepare for the busy holiday season, they are looking for more ways than ever before to shop responsibly and budget for larger expenses. With inflation reaching a 40-year high, consumers have increasingly turned to Buy Now, Pay Later to manage their finances and budget for everyday purchases. Unlike traditional credit or other BNPL providers, Afterpay’s platform is built to encourage responsible spending, with consumer safeguards that are fundamental to how Afterpay works – meaning customers can’t revolve into debt with expensive fees and interest.
Just in time for the holiday season, Afterpay is introducing its new payment solution to support merchants and customers alike. With Afterpay’s new monthly payment option, Afterpay customers can budget their money over a six or twelve month period for purchases between $400 and $4,000 with consumer-friendly payment terms¹ including:
- No late fees
- No compounding interest with a cap on total interest owed
- A clear view of what is owed at time of purchase which won’t increase during the course of the payment plan
Because this new solution is designed for purchases between $400 and $4,000, merchants can offer Afterpay for more items in more categories without paying additional transaction fees or integration costs – while benefiting from new customer growth, increased sales, and higher average order values. Initially offered for existing customers making online purchases, the monthly payment solution will be available for in-person purchases in 2023.
Afterpay gives consumers the ability to use their own money and pay over time without having to turn to expensive credit cards which can lead to revolving and compounding debt. Built from the ground up to help consumers pay responsibly, more than 98% of Afterpay transactions never incur a late fee and more than 90% of Afterpay transactions are paid with a debit card².
Since 2020, US consumer spending on BNPL has increased 660 percent³. This is more than five times the rate of growth for debit card spending (43 percent) and credit card spending (8 percent)⁴.
Afterpay’s monthly payment option is offered in partnership with First Electronic Bank, Member FDIC. Merchants and shoppers can find more information about the monthly payment option here.
¹You must be over 18, a resident of the U.S. and meet additional eligibility criteria to qualify. Loans through the Afterpay Pay Monthly program are underwritten and issued by First Electronic Bank, Member FDIC. A down payment may be required. APRs range from 0% to 35.99%, depending on eligibility. As an example, a 12 month $1,000 loan with 21% APR would have 11 monthly payments of $93.11 and 1 payment of $93.19 for a total payment of $1,117.40. Loans are subject to credit check and approval and are not available to residents of Hawaii, West Virginia, New Mexico and Nevada. Valid debit card, accessible credit report and acceptance of final terms required to apply. Estimated payment amounts shown on product pages exclude taxes and shipping charges, which are added at checkout. Click here for complete terms.
here to link to: Consumer Lending (Pay Monthly) Loan Agreement (*not* Installment Agreement for Afterpay pay-in-4)
² Figures as of June 30, 2022
³Source: The Next Generation Index, February 2022
⁴Source: The Next Generation Index, February 2022