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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 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. BNPL helps drive incremental sales – businesses using Afterpay see a 20% increase in cart conversion on average and more repeat customers.
2. Increase your average order value – Afterpay lets customers get what they want, when they want it, increasing average order value by up to 40%.
3. Attract new customers – Merchants find that 30% or more of Afterpay customers are new to their brand.
Did we mention that as a Square seller you get early access to try Afterpay with no additional charge? Until 10 May 2022, you’ll pay the same 2.2% (incl. GST) processing fee for Afterpay transactions as you do on all Square Online transactions. There’s no additional setup cost or monthly fee!
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?
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.
See here for more information about Afterpay fees applicable after 10 May 2022.