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:
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.
Enabling Afterpay with Square is free—there are no monthly fees or startup costs. The Afterpay processing fee is 6% + 30¢ (excluding GST) per Afterpay order across all Square products that accept it.
Square sellers using Afterpay get paid the full amount at the time of purchase, minus a processing fee on the total order.
You only pay when you make a sale—there are no processing fees charged on the remaining instalments or if your customer makes a late payment.
Afterpay rates are fixed and do not vary by subscription type, hardware, or custom pricing.
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.
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: