Afterpay, a Melbourne Australia-based instalment payment firm has been in operation for three years and has already expanded into the US and signed with 1000 merchants, including most recently, Rebecca Minkoff. The Afterpay system allows customers to pay for a purchase in three payments over six weeks after paying 25 percent of the full price upfront. Merchants receive full payment of the purchase immediately for a fee and Afterpay takes on the potential risks that may come from nonpayment.
The system has become widely popular throughout Australia and is responsible for the processing of nearly 25 percent of all e-commerce orders within the fashion and beauty arena. The company initially debuted in the US with Urban Outfitters Inc, and later expanded to include Revolve and now Rebecca Minkoff. According to Nick Molnar, CEO and co-founder of Afterpay, brands using the system have seen a growth in conversion rates and sales by 20 to 30 percent.
In July this year, Afterpay was used as a payment method for over 150,000 shoppers in the US. A figure sure to increase as more brands and businesses sign with the company.
“As we continue to cater to and attract a broader Millennial audience, we believe Afterpay will align with their purchasing patterns and online engagement. Staying close to our customers has always been a priority and investing in this enhanced online experience has been a critical brand investment,” said Uri Minkoff, CEO and co-founder of Rebecca Minkoff.