The ‘Buy Now, Pay Later’ company said on Wednesday it was targeting the $ 1.5 trillion global subscription payment market by offering installment payments for subscriptions, like gym memberships , entertainment subscriptions and online services, to its US customers.
The service will launch in the United States and Australia in early 2022 and will be free for customers who pay on time. IPSY, BoxyCharm, Savage X Fenty, and Fabletics are among the initial list of merchants that will offer the feature. The company plans to expand the functionality in stores and other regions later, including Canada, New Zealand, the UK and Europe.
In addition to paying for subscriptions in installments, Afterpay also allows its offer to be used on pre-ordered items, where users can pay in four installments over time after the item ships. Another upcoming feature will allow merchants to accept deposits on personalized items.
“By offering customers the option to pay for subscriptions with Afterpay, we are not only giving consumers the option to pay higher monthly fees, but we are also helping our merchant partners capture a larger consumer base through this hands-on experience. Zahir Khoja, general manager of North America for Afterpay, said in a written statement.
Klarna, Afterpay’s competitor in the BNPL space, also announced this week to its American customers that it was offering its “Pay Now” option.
Meanwhile, in August, Square announced it was buying Afterpay in an all-stock deal valued at $ 29 billion. Afterpay also made its feature debut recently, launching both Afterpay Ads, a suite of advertising products that allow brands to engage with buyers within the ecosystem, and the Afterpay merchant analytics tool. IQ, in August.
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 the previous year. North America is the company’s “largest region in terms of underlying sales,” which grew 145% year-over-year, or $ 4 billion over the past year. fiscal year 2020 to $ 9.8 billion in fiscal 2021, according to the company.