Customers opting into the new range of “buy now, pay later” services are able to receive their purchases upfront, while only spending a portion of the total cost at checkout. Now, shoppers can save even more as Australia-based payment solutions company Afterpay opens its second biannual Afterpay Day sale to U.S. customers.
Afterpay Day will take place on Aug. 14-15 and offer shoppers discounts and promotions across footwear retailers such as Steve Madden and Schutz, as well as other apparel and beauty brands. The event is timed for back-to-school shopping, as Afterpay’s services are particularly targeted at millennials and Gen-Zers. These demographics are frequently credit-card averse and therefore looking for alternatives; only 1 in 3 millennials owns a credit card, according to a 2016 Bankrate survey.
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Nick Molnar, co-founder of Afterpay and its U.S. CEO, said in a statement, “After building tremendous momentum in the U.S. over the last year, we are thrilled to partner with merchants to promote the second biannual Afterpay Day sale to over 2 million customers who have used the service at one of our retail partners. Customers can shop a record amount of amazing deals from the most loved fashion and beauty brands.”
The sale builds on Afterpay’s premise of making shopping costs more manageable and budget-friendly. Through the firm’s installment plan, users pay 25% of the purchase total at checkout and receive their items. They then pay the remaining 75% over three additional installments, at two-week intervals. There is no interest collected; however, customers are subject to late fees if they do not pay on schedule.
For U.S. retailers, the launch of Afterpay Day is projected to increase sales and revenue. Afterpay reported that its March 2019 sale resulted in a 110% average increase in gross merchandise value during the two-day period. Some retailers reported increases of 300%+. The company is also promoting Afterpay Day as a way to target a new demographic of customers.
“The world’s most valuable consumers, the millennial and Gen-Z generations, are quickly moving away from traditional credit,” said Molnar. “Afterpay partners with retailers to create incremental value and to enable them to better serve existing customers and reach new customers.“
The payment services company currently partners with over 6,500 U.S. retailers, after launching in the States a year ago. Its network represents more than 10% of the country’s fashion and beauty industry, including companies like DSW, Anthropologie, MAC Cosmetics and Estee Lauder Group.
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