Monday , April 15, 2024

Eye on BNPL: Square’s Afterpay Marks Canada Debut; Allegiant Taps Uplift

Square, the payment-processing unit of Block Inc., is integrating its Afterpay buy now, pay later service into its e-commerce products across Canada. Meanwhile, airline Allegiant introduced Allegiant Pay Powered by Uplift for flights, hotels, and car-rental bookings made by its customers. Uplift is a travel-specific buy now, pay later provider.

The Square move follows a similar integration for U.S. and Australian merchants for in-store transactions. Square says the expansion into Canadian e-commerce will help merchants there attract new shoppers and drive incremental revenue growth. BNPL payments are projected to grow 63.5% and reach $5.9 billion in Canada in 2022, according to data-analytics company Research and Markets, Square says. Square acquired Afterpay in January for $29 billion.

Based on its U.S. and Australian BNPL business, Square says the average transaction size with Afterpay is three time greater than non-BNPL transactions. Afterpay is available to eligible Canadian merchants now using Square Online and Square Online Checkout. There is no additional cost to using Afterpay through Dec. 31, though transactions are processed at standard e-commerce processing rates.

In related news, airline Allegiant introduced Allegiant Pay Powered by Uplift for its customers to make installment payments for their travel costs. Travelers can use the service for purchases as little as $49 and for three-to-11-month terms with no late fees or prepayment penalties.

“Our extended partnership with Uplift means Allegiant customers will have a flexible payment option for flights, hotels, and car rentals as we continue to grow,” Scott DeAngelo, Allegiant executive vice president and chief marketing officer, said in a statement.

Sunnyvale, Calif.-based Uplift says more than 200 airlines, cruise lines, resorts, and other major travel providers offer its BNPL service.

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