Afterpay Reaches Five Million Active Customers after Two Years in U.S. Market
Afterpay, the leader in "Buy Now, Pay Later" payments, announced that there are now more than five million active shoppers1 in the U.S. using the service at Afterpay merchant partners. Afterpay now has nearly nine million U.S. consumers who have joined the platform2, including more than one million new customers using the platform during the COVID- 19 period of the last ten weeks3. This represents a 30-40% increase in the weekly run rate from January and February. These milestones have been achieved after launching in the U.S. just two years ago - making Afterpay one of the fastest growing ecommerce payment companies in the market.
More than 15,000 brands and retailers are offering, or in the process of offering Afterpay to their customers, which now include A.L.C., AE/Aerie, American Eagle, Birkenstock, Furla, Herschel, Lancer Skincare, Marc Jacobs Beauty, Perricone MD, Soko Glam and The Hut Group, Tilly's, YSL Beauty, and more. A full list of brand and retail partners can be found on Afterpay's Shop Directory. The company assisted merchants in processing $2.4 billion year to date through Q3 FY20, a 354% increase over the same period in FY19.
In April of 2020, Afterpay had more than 15 million app and site visits, and Afterpay's U.S. Shop Directory contributed nearly 10 million lead referrals to its retail partners.
Afterpay allows merchants to give shoppers the ability to receive products immediately and pay in four simple installments over a short period of time. The service is completely free for customers who pay on time - helping consumers spend money responsibly, without incurring interest, fees or revolving and extended debt. More than 85% of Afterpay orders are made with debit cards.
"At a time in which ecommerce has become the primary way people are shopping, there is a growing interest and demand among consumers to pay for things they want and need over time using their own money - instead of turning to expensive loans with interest, fees or revolving debt," said Nick Molnar, co-founder and U.S. CEO of Afterpay. "We feel so grateful to partner with the merchant community to support their shoppers and help them attract more customers, as commerce and retail starts to rebound over the next several months."
By offering Afterpay, merchants give consumers more flexibility and spending power, reducing friction in the purchasing process, which ultimately drives higher sales and new customers to their business. On average, merchants see customer conversion rates increase by over 20% and average order values increase by over 25% compared to all other payment methods.