13 Jul, 2020, 08:01 ET
SAN FRANCISCO, July 13, 2020 /PRNewswire/ -- Afterpay (ASX:APT), the leader in "Buy Now, Pay Later" payments, announced today that it has partnered with Drunk Elephant, New Balance, It Cosmetics, Living Proof, and ASOS - offering shoppers a more flexible way to pay just in time for midsummer shopping and the "new normal" of social distancing.
Since consumers went into lockdown across the U.S. nearly four months ago, Afterpay has seen a significant increase in demand for fitness, beauty, and casual fashion items. More specifically, during quarantine, Afterpay experienced 4x more clicks on fitness and 1.2x more clicks on beauty, with top selling fashion items including t-shirts, shorts, sneakers, and leggings. This shift in consumer spending demonstrates a clear interest from shoppers in products that promote a casual lifestyle, wellness, and self-care - making now an ideal time to offer Afterpay with these consumer-favorite brands.
Nick Molnar, Afterpay Co-Founder and U.S. CEO said, "During the current COVID period, our customers are gravitating towards items that reflect their 'new normal' lifestyle with a strong preference in using their own money and paying over time. We are thrilled to welcome these new brands to the growing Afterpay family during this important shift in retail spending."
"We are pleased to be launching Afterpay for our US customers. We know choice is important to our 20-something, fashion loving customers and the addition of Afterpay as a payment method in the US will help to provide the best customer experience for our US customers," said Eve Williams, Brand Experience Director, ASOS.
Afterpay already collaborates with brands consumers love including Birkenstock, American Eagle, Kylie Cosmetics, Urban Outfitters, Steve Madden, and Ulta Beauty. By offering Afterpay, merchants give consumers more flexibility and spending power - reducing friction in the purchasing process and ultimately driving higher sales and new customers to their business. On average, with Afterpay, merchants globally see customer conversion rates increase by more than 20%, and average order values increase by more than 25% compared to all other payment methods.
In fact, a recent analysis of Afterpay users in the U.S. found that 83% of customers use the service because of its product features, specifically budget management and the lack of incurred interest.1 The same report found that just over 50% of Afterpay customers visit the Afterpay app/portal weekly, and 93% expect their usage of Afterpay to either increase or stay the same.
Today, more than five million U.S. customers use Afterpay at more than 15,000 top retailers after just two short years since launching in the market.
About Afterpay Limited
Afterpay Limited (ASX: APT) has transformed the way people pay by giving merchants the ability to allow shoppers to receive products immediately and pay in four simple installments over a short period of time. The service is completely free for customers who pay on time - helping consumers spend money responsibly without incurring interest, fees or revolving and extended debt. As at 31 March 2020, Afterpay is offered by more than 48,400 of the world's best retailers and is used by more than 8.4 million active customers globally.
Afterpay is currently available in Australia, New Zealand, the United States and the United Kingdom where it is called Clearpay. Afterpay is on a mission to be the world's most loved way to pay.
1 Bank of America Securities Global Research - Survey of Afterpay US Subscribers
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