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As an Australian business owner (or shopper) there’s a fair chance that you have heard of buy now, pay later (BNPL) payment options like Afterpay. In fact, you might already be using them. If you don’t know what we are talking about here’s a quick 101. BNPL is a type of instalment payment service that allows customers to make purchases without paying the full value upfront. Instead, they pay in a series of interest-free instalments over a period of time. Allowing your customers more choice in how and when they pay, sounds too good to be true, right?
In case you missed it, Square Online is now integrated with leading buy now, pay later (BNPL) solution (and Aussie founded) Afterpay. As a Square Online seller, you can now offer Afterpay as a payment option and let your customers pay for their purchase in four interest-free instalments over six weeks. The best part? You get paid in full right away!
How will buy now, pay later help my business?
Here are three reasons why,
1. Increase conversion at check-out – Afterpay converts. Grow your cart conversions by up to 22%*, plus gain repeat shoppers.
2. Afterpay consumer spend more – around 54% more overall**, with active Afterpay consumers average order value being 28% higher**.
3. Stay relevant – 48% of Afterpay active consumers would shop elsewhere if Afterpay wasn’t available†.
Need more reason to give Afterpay a try? Sydney-based wedding jeweller, The Callie Corp, was one of the first Square sellers in Australia to enable Afterpay as a payment option for its online store and is already feeling the benefits.
“Being able to offer Afterpay has immediately been a game-changer for us: we’ve seen more net-new customers buying our products and received our largest ever sale just 24 hours after the payment option was switched on,” said Rebecca McIntyre, CEO and founder of The Callie Corp. “We started The Callie Corp to help wedding parties find affordable but high-quality products. Given so many weddings were cancelled over the past two years, we have really ambitious growth plans and are relying on Square’s ecosystem – particularly Square Online and Square Appointments – and Afterpay to help us achieve those goals.”
Does buy now, pay later affect my customers’ credit scores?
In Australia, Afterpay doesn’t require external credit checks from your customers to qualify, so signing up won’t hurt their credit score. Plus, there are no application fees for shoppers.
Can I accept Afterpay in-store, or just online?
Currently, you can accept Afterpay payments on your Square Online site. Afterpay will also be available for in-person payments and on Square’s developer platform in the near future.
How much does Afterpay cost?
Sellers using Afterpay get paid upfront at the time of purchase, minus a processing fee on the total order. See here for more information on Afterpay fees.
*Source: “Quantifying The Incremental Impact of Afterpay” Mastercard 2021.
**Based on the analysis of Afterpay consumers vs. a lookalike control group over a 12 month period, Mastercard Study: Quantifying the incremental impact of Afterpay, June 2022. Incremental spend is measured based on the 12 months post period of the test customer group adopting Afterpay, with the 6 months pre period being to determine an effective control group defined by those customers who have a similar composition in terms of similar spending behaviours and patterns with similar merchants and look demographically the same from the data captured by Mastercard. The statements are based on the above study and actual preferences/behavior may differ.
† Source: Afterpay Brand Equity Tracking, Australia and New Zealand, Wave 8, November 2023
