Australian buy now, pay later platform Afterpay is chasing a chunk of the massive North American retail market, launching in the US with lifestyle giant Urban Outfitters.
The service is now live on Urban Outfitters’ online store and will roll out across the company’s other brands, Anthropologie and Free People.
While Afterpay is available in bricks-and-mortar stores in Australia, the US launch is currently restricted to e-commerce, with plans to introduce in-store capability in due course.
Dave Hayne, chief digital officer at Urban Outfitters said the company looks forward to launching Afterpay across its portfolio of brand websites in the US market.
“Preliminary tests in the US have shown promise, and based on the success Afterpay has seen in Australia, we have reason to believe our US customers will embrace this innovative new payment solution,” he said.
Founded in 2015, Afterpay allows shoppers to receive products immediately and pay for them in four interest-free instalments. Retailers are paid upfront and Afterpay assumes all non-payment risk.
The platform has grown to include more than 14,000 Australian retailers and has served 1.8 million Australian customers to date.
Nick Molnar, founder and CEO of Afterpay said the service is especially appealing to millennials, who are reluctant to use credit cards and other forms of traditional finance.
“Afterpay helps shoppers get over that initial price hurdle by offering a platform to help budget for things that they want without needing to take out a loan or open a credit card,” he said.
“The service is also appealing to retailers and brands as it helps to increase conversion rates and incremental sales by 20 to 30 per cent.
“We are excited to be bringing our platform to the US and launching with Urban Outfitters, an iconic brand group that shares our innovative DNA and drive to deliver great experiences for customers.”