Afterpay ups ambition

Buy now, pay later giant embraces Apple Pay, Google Pay in US market

AFTERPAY is increasing its endeavours to take a major stake in the US buy now, pay later market by offering shoppers the ability to pay in-store using Apple Pay and Google Pay.

In a statement to the ASX on Wednesday morning, the Australian tech darling announced its US division had partnered with both major digital payment platforms, a move that will allow their customers to use the payment platform within physical retail stores.

The exclusive partnership is the first type of arrangement between a buy now, pay later provider and the major tech giants’ digital payment platforms within the North American market.

Digital laybuy transactions have predominantly only been available via online shopping channels.

Afterpay US chief executive Nick Molnar said the partnership was “critical” to the company’s North American expansion plan, especially as retail trading started to improve following the COVID-19 pandemic.

“Afterpay and Google Pay give shoppers the ability to choose either physical or online shopping while still being able to budget their own money and avoid expensive loans, interest and fees – which has shown to attract new customers and drive more sales conversion for our retail partners,” Mr Molnar said.

Afterpay offers in-store payment options at selected retailers across Australia and New Zealand.

Physical payments are conducted through the company’s digital app.

Afterpay has close to 10 million active customers globally and, in the US, has merchant agreements with Forever 21, Ray Ban and Urban Outfitters.

The company previously said its platform had experienced high adoption rates during the coronavirus pandemic as customers look for budgeting payment methods.

“As we enter the second half of the year and retail re-emerges across the world, it’s critical we help our partners drive business growth, both online and offline,” Mr Molnar said.

Afterpay noted in-store sales in Australia and New Zealand equated to 24 per cent of underlying sales, with approximately 40,000 stores offering the service.

Afterpay has flagged Apple Pay will be available within its Australian, New Zealand and UK businesses in the coming months.