Offering flexible payment options has become increasingly critical to driving sales and customer loyalty during the COVID-19 pandemic. While retailers have largely been able to extend such offerings to their online customers, in-store availability of flexible payment options at the point of sale (POS) has largely remained absent. That is a problem which buy-now-pay-later provider Afterpay is seeking to resolve. The company is partnering with retailers from across the country to extend flexible payment options beyond the online checkout process.
According to a company announcement, U.S. customers can now make purchases utilizing the Afterpay service in select retail stores using a virtual, contactless card stored within their mobile wallet. The in-store payment process is much like how it is online, wherein customers can pay for their items in four installments without taking out a traditional loan or being bothered with upfront fees or interest rates.
“Just in time for the holiday shopping season, we are thrilled to roll out our in-store capabilities to all customers in the U.S. – making paying in-store more convenient, secure and contactless,” said Nick Molnar, Afterpay’s Co-founder and CEO of North America.
Upon completing a transaction, customers will be able to tap the card icon found within the Afterpay app, which will then activate the mobile wallet card. From there, the customer can complete their purchase through Google Pay or Apple Pay.
“Afterpay customers can now choose either physical or online shopping to buy holiday gifts – which brings new customers and drives more sales conversion to retailers without any additional set-up or integration costs,” Molnar.
According to Afterpay findings, the BNPL service found that its customers who choose to shop both online and in-store spend anywhere from 15-20 percent more per transaction than online shoppers and shop 66 percent more frequently. Furthermore, retailers see their average order values (AOV) triple compared to other payment forms and units per transaction double.