SAN FRANCISCO–(BUSINESS WIRE)–After-paymenta leader in “Buy Now, Pay Later” payments, today launched a new payment solution that gives consumers even more choice, flexibility and time to pay, with transparent terms to drive responsible spending – just in time for the busy holiday season.
Consumers who choose Afterpay’s monthly payment option can budget their money over a six- or twelve-month period for purchases between $400 and $4,000 with convenient payment terms.1 including:
No late fees
No compound interest with a cap on total interest due
A clear view of what is owed at the time of purchase that will not increase during the payment plan
Designed for purchases between $400 and $4,000, merchants can now offer Afterpay for more items in more categories without paying additional transaction or onboarding fees, while benefiting from new customer growth, increased sales and higher average order value. Initially offered to existing customers making purchases online, the monthly payment solution will be available for in-person purchases in 2023.
“Our new offering is a natural extension of the Afterpay experience – giving customers a new way to take more control and have more choice in how they pay,” said Lee Hatton, Head of Cash App Asia Pacific. . “We look forward to helping our customers with another smart budgeting tool.”
Starting today, consumers can use Afterpay’s monthly payment option on US merchant websites, including Bellacor.com, EyeBuyDirect, FWRD, and Your Mechanic, among others, with other merchant partners at come. The company plans to expand the offer to merchants outside of the United States 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. Designed from the ground up to help consumers pay responsibly, over 98% of Afterpay transactions never incur late fees and over 90% of Afterpay transactions are paid with a debit card.2
Since 2020, U.S. consumer spending on BNPL has grown 660%3. This is more than five times the growth rate of debit card spending (43%) and credit card spending (8%).4
Afterpay’s monthly payment option is offered to existing customers in partnership with First Electronic Bank, Member FDIC. Merchants and buyers can find more information on the monthly payment option here.
Afterpay is transforming the way we pay by allowing anyone to buy products immediately and pay over time – enabling simple, transparent and responsible spending. We are on a mission to propel an economy in which everyone is a winner.
Afterpay is offered by thousands of preferred retailers worldwide and used by millions of active global customers5. 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 a wholly owned subsidiary of Block, Inc. (NYSE: SQ).
1 You must be over 18, reside in the United States, and meet additional eligibility criteria to be eligible. Loans through the Afterpay Pay Monthly program are underwritten and issued by First Electronic Bank, Member FDIC. A deposit may be requested. APRs range from 0% to 35.99%, depending on eligibility. For example, a 12-month $1,000 loan with an APR of 21% 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 verification 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 the final conditions required to apply. Estimated payment amounts shown on product pages exclude taxes and shipping, which are added at checkout. Click on here for full terms.
here to link to: Consumer Loan Loan Agreement (monthly payment) (*not* installment agreement for Afterpay pay-in-4)
2 Figures as of June 30, 2022
3 Source: The Next Generation Index, February 2022
4 Source: The Next Generation Index, February 2022
5 Figures as of June 30