In case you hadn’t heard yet, Afterpay is officially here! Square sellers can now accept Afterpay for both in-store and online sales. This is big news, especially for retailers using Square. Retail businesses are leaders in offering buy-now-pay-later (BNPL) options to their customer base – and in Australia, Afterpay is the preferred BNPL solution.
With Afterpay, customers pay for their purchase in four interest-free instalments over six weeks. As the merchant, you get paid the full amount at the time of purchase, minus a processing fee on the total order. Enabling Afterpay with Square is free. You only pay when you make a sale.
Retail businesses are constantly adapting to meet the evolving needs of their customers. For many businesses, this includes expanding payment options for a dynamic, omnichannel environment. Even though trends may come and go, one thing always stands: listening to what customers want and finding fresh ways to keep them returning to your store. Afterpay may be the innovation that helps you achieve this, and it’s now easier than ever to get on board.
Why consider Afterpay for your retail business?
Offer more ways to pay
Providing more ways to make a sale is a big plus for your retail business, and could be the reason for a customer choosing to shop at your store over a competitor. BNPL services are booming for local retailers. One Roy Morgan study found that over 3.3 million Australians (15.7%) used BNPL services in the year to June 2021, up from only 6.8% in September 2018.
If you think Afterpay is a niche payment option, you may want to reconsider. The same 2021 study found that over 75% of Australians were now aware of Afterpay – a number that’s only set to grow.
With so many Australians opting to buy now and pay later, whether in a brick-and-mortar store or online, now is the time to add Afterpay to your payment options on offer.
With Afterpay now part of the mix, Square’s payment ecosystem offers retailers a comprehensive and convenient set of payment acceptance options to suit the needs of any customer. When you take payments with Square, you can accept any major debit or credit card or mobile wallet payment for one simple flat fee.
As a retailer, you need the connected tools to not only take payments easy but to build closer relationships with your customers, manage inventory and sell online. All of this is streamlined through Square’s point-of-sale system designed specifically for retailers: Square for Retail.
Drive incremental sales
Looking for sustainable upselling opportunities for your retail business? Afterpay may be a valuable solution. In fact, Afterpay can bring in sales that you might otherwise have missed. If you’re running a clothing boutique, for example, you may have a group of regular customers who visit your store every season to buy items from the new collections, or off the sale rack.
For some of these customers, it’s important they stick to a predetermined budget. But what happens in the case of a special event or trip they need to dress for? If the customer has already spent outside of their clothing budget for the month, Afterpay could be a clever way to bridge the gap – helping the customer afford the purchase by spreading it out over four instalments. In the meantime, you’ve made the extra sale while your competitor boutique down the road has likely missed out because they don’t offer Afterpay.
Attract new customers
Retail businesses have to balance the need to look after existing customers with making an effort to attract new ones. Customer acquisition. However there’s one fact you need to consider when refining your retail business growth strategy: new customer acquisition is the only way you’ll be able to increase your market share, putting you ahead of competitor retailers, and taking your influence to new heights.
Afterpay has proven to be a highly effective customer acquisition channel for Australian retailers. We know that Afterpay generates increased revenue for SMB’s, with around 90% of Afterpay sales being new sales.
Enabling Afterpay is one major step towards increasing customer acquisition, but don’t forget the other important step: to tell them about it! Letting customers know that they can now pay with Afterpay, whether at your store or online, is an effective way to encourage new sales and generate interest in your business. When you get started with Afterpay you can order an official marketing kit for free. You can also download a range of digital marketing assets to embed on your website and social media posts.
Improve customer loyalty
Even though customer acquisition is key, it’s also important to take care of your best, most loyal customers who’ve been shopping with you for a while. These customers may be using Afterpay already with other retailers, or maybe they’ve been considering trying it out for the first time. Either way, by offering a greater selection of payment options, you’re sure to keep more customers happy and drive enduring loyalty.
A recent Mastercard Advisors study found that once they start using Afterpay, Australian consumers spend more per transaction and shop more frequently, driving a 45% increase in consumer spending at Afterpay integrated merchants.
There’s good news in store for your existing customers who are already part of your Square Loyalty program. These customers will keep earning loyalty points, even on Afterpay transactions with your store. If your customer has joined your Square Loyalty program, they’ll receive the corresponding Loyalty points for their entire in-person or online transaction. Loyalty rewards, Gift Cards and vouchers can be used in conjunction with Afterpay, so long as the remaining cart balance is still within the eligible purchase range.
Interested in bringing buy now, pay later to your retail business? Read more: Accept Payments with Afterpay with Square.
Or learn more about Square for Retail: the POS software made specifically for retail businesses
This article is for informational purposes only and does not constitute professional advice. For specific advice applicable to your business, please contact a professional.