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Home>Afterpay Overview

Afterpay and Square

Afterpay is a buy now, pay later (BNPL) payment option that allows customers to pay for their purchases in four interest-free instalments. Merchants get paid in full—immediately. If eligible to accept Afterpay on your Square account, you can process Afterpay payments:

Online

Square Online: If you’re eligible to accept Afterpay online, you’ll be automatically enabled on your Square Online website so you can boost online sales, increase average cart size and attract new customers. No additional integration is required.

Learn more via our Square Webinars: Afterpay YouTube video.

Square Online Checkout: Eligible sellers can automatically use Afterpay when they create a payment link with Square Online Checkout, allowing customers to select Afterpay as a payment method at checkout.

In-Person

Eligible sellers can enable Afterpay in-person and you are ready to begin accepting Afterpay straight away—no additional integration is required.

Your Square hardware will automatically allow customers to pay for in-person goods and services using their contactless Afterpay Card via digital wallets like Apple Pay, Google Pay or Samsung Pay.

Afterpay in-person acceptance is currently available with:

Invoices

Eligible sellers can enable Afterpay acceptance when sending digital invoices and estimates via your online Square Dashboard, Square POS app or Square Invoices app.

Learn more about sending Square Invoices online.

Learn more about processing Afterpay payments via our Square Online FAQ, In-Person FAQ or watch our YouTube video below.

Features

Afterpay gives your customers more payment flexibility when checking out online and in-person — see how your sales can grow:

  • Increase your average transaction value.
    Customers who use Afterpay have an 18% higher average transaction value.*

  • Reach new customers ready to spend. 
    85% of Afterpay customers discovered a new merchant in the last six months.**

  • Never miss a sale.
    Let customers pay how they want – with more flexibility – at no risk to you. 

* Mastercard AU Incrementality Study, October 2020.
** Internal Afterpay Study, September 2021.

Performance highlights from the Afterpay Limited FY21 Annual Report include:

  • Expand your reach.
    3.6 million customers shop with Afterpay in Australia and New Zealand.

  • Bring in more business.
    The top 10% of Australian and New Zealand customers use Afterpay more than 64 times per year.

  • Prepare to grow. 
    Afterpay sends 1 million referrals to merchants every day.

Pricing

There are no monthly fees or startup costs to start processing Afterpay with Square. You only pay a processing fee of 6% + 30¢ (excluding GST) per online or in-person transaction.

Note: Afterpay rates are fixed and do not vary by subscription type, hardware, or custom pricing.

Eligibility

To see if you are eligible for Afterpay and Square, log into your online Square Dashboard and review your Payment Methods. If Afterpay is available to your business, you can toggle on Afterpay acceptance both Online and In-person. If you are listed as "Ineligible," you cannot accept payments using Afterpay at this time.

Eligibility for Afterpay is dependent on numerous factors, including how your business is structured and what you sell. Eligibility includes, but is not limited to:

  • Sellers must be in an approved merchant category

  • Sellers must be based in Australia

  • Sellers cannot have multiple Tax Identification Numbers (TINs) or business numbers (such as ABNs)

We are working to expand Afterpay availability over time to allow more sellers to accept Afterpay within their business. Review our Afterpay Merchant Terms for more information.

Enable or Disable Afterpay

To enable or disable Afterpay for in-person transactions on Square POS app and Square Appointments app, you can enable/disable Afterpay directly from your app or online Square Dashboard.

If you're using Square for Retail POS, Restaurants POS, Invoices or Virtual Terminal, you will need to visit Payment Methods via your online Square Dashboard to enable/disable Afterpay.

Square Dashboard

  1. Go to Account & Settings from your online Square Dashboard.
  2. Click Business > Payment Methods.
  3. Next to the Afterpay payment method, click ••• then Edit settings.
  4. Toggle the In-Person setting on/off.

Square Dashboard - Account Settings - Payment Methods - AU

Square App

To enable or disable Afterpay for in-person transactions on Square POS app and Square Appointments app, you can enable/disable Afterpay directly from your app or online Square Dashboard.

From your Square POS app or Square Appointments app:

  1. Tap ≡ More > Settings > Checkout > Payment.
  2. Under All payment types, tap Configure Afterpay. You will be directed to your dashboard via a web browser.
  3. Toggle the In-person setting on/off.

If you’re using Square for Retail POS, Square for Restaurants POS or Virtual Terminal, visit the Payment Methods setting from your online Square Dashboard to enable/disable Afterpay.

Square POS App - Settings - Payment - Afterpay - AU

Once you've enabled Afterpay, customers can pay in-person via their Afterpay Card on any Square app. Customers can also pay via Virtual Terminal, Square Online and Square Online Checkout.

Afterpay and Square FAQ

Read the following articles to learn more about Afterpay acceptance:

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