Afterpay

Afterpay is a leading buy now, pay later (BNPL) platform that allows customers to split the cost of purchases into four equal, interest-free installments over six weeks. Founded in Australia in 2015, Afterpay has grown rapidly and is now available in multiple countries, including the US, UK, and New Zealand. The company's core offering enables users to make purchases at participating retailers and pay for them in four installments, with the first payment due at the time of purchase. Afterpay generates revenue primarily through merchant fees, charging retailers around 4-6% per transaction. As of February 2023, Afterpay had approximately 3.3 million users in Australia, representing about 15.6% of the population. In late 2021, Afterpay was acquired by US payments platform Square (now Block) for AUSD 39 billion.

Afterpay has expanded its services beyond its original "Pay in 4" model. In October 2022, the company introduced a monthly payment option for purchases between USD 400 and USD 4,000, allowing users to spread payments over six to 12 months. This new feature is designed to cater to higher-value purchases, particularly in categories like furniture and electronics. Afterpay also offers a single-use virtual card that can be used for online purchases at non-integrated merchants, expanding its utility for consumers.

Key customers and partnerships

Afterpay has partnered with over 300 retailers in Australia, including major brands such as Myer, David Jones, The Iconic, Nautica, and Bloom. In the US, Afterpay is available at popular retailers like Nike, Macy's, and Target. The company has focused on integrating with ecommerce platforms to make its service widely available for online shopping.