Digital Transactions Authoritative, insightful and timely information for payments professionals
Point-of-sale installment lender Afterpay Ltd. has agreed to provide its buy now, pay later service to customers of Gap Inc., including its Gap, Old Navy, Banana Republic, and Athleta brands.
Afterpay’s buy now, pay later service enables consumers to make four interest-free installment payments. The retailer is paid in full, minus a small transaction fee, when the sale is made.
“By adding Afterpay to our other payment options, we’re able to provide a more customized shopping experience, give our customers additional convenience and control, and reach a younger demographic who may not have been able to shop with us before,” John Strain, Gap chief digital and technology officer, said in a statement.
Buy now, pay later options are popular with merchants because they can increase the all-important conversion rate. “On a practical level, we see conversion rates jump about 22% when we deploy with a merchant,” says David Katz, Afterpay chief product officer, in an interview for an upcoming Digital Transactions magazine feature. The average order value typically is higher, too.
The move brings Australia-based Afterpay’s U.S. merchant base to 14,000. The company says it now serves 6.5 million active U.S. users, a number growing at 15,000 per day.
