Afterpay Introduces Apple Pay For In-Store Payments

Words by Romana Hai

Afterpay Introduces Apple Pay For In-Store Payments
Afterpay Introduces Apple Pay For In-Store Payments

Announced on Tuesday, the “Buy Now, Pay Later” firm Afterpay is enabling customers to now use Apple Pay to make purchases both in-store and online.

As of July, Afterpay users can expect select retail stores in the U.S. to begin offering Afterpay as another alternative form of payment.

Customers who choose to use the service can initiate their purchase by simply tapping the “card” icon found within the Afterpay mobile application, which then activates the Afterpay card in the customer’s Apple Wallet.

The process is similar to the online process, wherein customers can pay for their in-store purchases in four installment payments, without having to take out a traditional loan or pay upfront fees or interest. The service is free to use for those who pay on time.

Afterpay Introduces Apple Pay For In-Store Payments
Source: Afterpay

For retailers interested in enabling the service, merchant integration is not necessary, nor are costs associated with offering the service as it already integrates with existing payment terminals that accept Apple Pay. Forever21, Fresh, Skechers and Solstice Sunglasses are just some of the first stores that will launch the solution this year.

For customers located in Australia, the solution will be available to use in the next coming months.

The in-store offering was first introduced in 2016 to both Australia and New Zealand (ANZ). Afterpay immediately became the only online payment company to offer its service in physical retail locations successfully. At the end of 2019, almost 40,000 ANZ storefronts offered the service, allowing the Afterpay’s in-store solution to represent roughly 24 percent of total ANZ sales.

“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,” says Nick Molnar, Afterpay’s co-founder and U.S. CEO. 

“As a proven solution for driving incremental sales and new customer growth, we are thrilled to introduce our new omni-channel solution to U.S retailers as they begin to open their doors and bring shoppers back to their physical stores.” 

Retailers who have chosen to offer the Afterpay solution online have reportedly improved the visibility of their products, specifically to a demographic that prefers to pay without incurring debt on their credit card and interest or fees.

More than 89 percent of U.S. customers who use Afterpay select debit cards to make purchases.

Retailers have also witnessed increased conversion rates, increased basket sizes, customer satisfaction and repeat customers. 

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