“Buy Now, Pay Later” Company Afterpay announced on Wednesday that it was going after $1.5 trillion global subscription payments market By offering payment installments for membership, such as gym memberships, entertainment memberships and online services, to its US customers.
The service will launch in early 2022 in both the US and Australia and will be free for customers who pay on time. IPSY, BoxyCharm, Savage X Fenty and Fabletics are among the initial list of traders who will offer this feature. The company plans to expand the facility in-store and later to other regions including Canada, New Zealand, the UK and Europe.
In addition to paying for the subscription in installments, Afterpay is also enabling its offering to be used on pre-ordered items, where users can pay in up to four installments over a period of time once the item is shipped. Another feature coming soon will allow merchants to accept deposits on custom items.
“By providing customers the option to pay for subscriptions with Afterpay, we are not only giving consumers the flexibility to pay for more expensive monthly costs, but we are also providing our merchant partners with a wider consumer base through this convenient experience. Also helping to capture,” he said. Zaheer Khoja, general manager of North America for Afterpay, said in a written statement.
Afterpay’s competitor in the BNPL segment, Clarna, also this week announced news to its US customers that it was offering its “pay now” option.
Meanwhile, in August, Square announced it was buying Afterpay in an all-stock deal worth $29 billion. Afterpay has recently been on a roll with the feature debut, Afterpay Ads, in August, a suite of advertising products for brands to engage with shoppers within the ecosystem, and the launch of both the merchant analytics tool Afterpay IQ .
Afterpay works with 100,000 retailers and has approximately 10.5 million active customers in North America As of June 30, up from 5.6 million a year ago. According to the company, North America is the company’s “largest region in terms of underlying sales,” growing 145% year over year, or $4 billion in fiscal 2020, to $9.8 billion in fiscal 2021.