Buy now pay later selling is nothing new for retailers or customers, yet the interest free, no deposit finance market has seen a number of disruptive business models emerge in recent times.
King of these has been Afterpay which allows customers to pay off purchases in four instalments with no upfront payment. All that is needed is to create an account and the payments are automatically deducted every two weeks. Afterpay don’t charge any interest or fees unless a payment is missed.
Online retailers have been using Afterpay to great success and have been able to drive serious sales growth for retailers, especially amongst millennial market segments. However, brick and mortar retailers shouldn’t feel left out as they too can reap the benefits as Afterpay is available instore.
More importantly retailers need not assume any risk by offering Afterpay either as, besides driving sales, Afterpay guarantees retailers up-front payment automatically and the company assumes the end-user non-payment risk.