SAN FRANCISCO–(BUSINESS WIRE)–Afterpay, a leader in “Buy Now, Pay Later” payments, today introduced a new payment solution that give consumers even more choice, flexibility and time to pay, with transparent terms to support responsible spending – just in time for the busy holiday shopping season.
Consumers who select Afterpay’s monthly payment option 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
Designed for purchases between $400 and $4,000, merchants can now 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 to existing customers making online purchases, 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 the way they pay,” said Lee Hatton, head of Cash App Asia Pacific. “We look forward to supporting customers with yet another smart budgeting tool.”
Starting today consumers can use Afterpay’s monthly payment option at US merchant websites including Bellacor.com, EyeBuyDirect, FWRD, and Your Mechanic among others, with additional merchant partners coming soon. The company plans to extend the offering to merchants outside the U.S. 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 card.2
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 to existing customers in partnership with First Electronic Bank, Member FDIC. Merchants and shoppers can find more information about the monthly payment option here.
About Afterpay
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 power an economy in which everyone wins.
Afterpay is offered by thousands of the world’s favorite retailers 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).
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1 You 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
5 Figures as of June 30
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Source: https://thenewscrypto.com/afterpays-new-monthly-payment-solution-gives-consumers-more-ways-to-pay/