BNPL Firm Afterpay Partners With 3 Top Retailers

Buy now, pay later (BNPL) firm Afterpay has formed partnerships with Nordstrom, Calvin Klein and Tommy Hilfiger, with Nordstom already offering Afterpay’s service online and in-store.

“We are constantly evolving to enhance the customer experience both in-store and online at Nordstrom and Nordstrom Rack,” Dennis Bauer, president of payments and credit at Nordstrom, said in a news release Thursday (Jan. 27).

“This includes offering flexible payment options to meet customer needs. We have heard from our customers that buy now, pay later programs resonate with them and are excited to partner with Afterpay to make these options available to them.”

The companies note that over the past decade, economic uncertainty has made younger consumers “increasingly credit averse,” favoring debit cards over credit. Afterpay says its option, allowing shoppers to use their own funds and pay in installments, has seen spending through it service increase 230% since 2020.

“As these younger generations mature and their spending power grows, merchant partners can tap into the Afterpay’s core demographic of highly-engaged, young consumers,” the company said. “Brands can also benefit from additional exposure through Afterpay’s Shopping App, which refers more than one million shoppers per day to their online and physical stores.”

Learn more: Retailers Look to Leverage the ‘Now’ in Buy Now, Pay Later

PYMNTS research found that 29 million Americans used BNPL for at least one transaction in 2021. Roughly 25% of consumers making between $50,000 to $100,000 a year are cut off from traditional avenues of credit, and 73% of “second chance” consumers who have used or would use BNPL say they would be more likely to shop at a merchant that offered that payment choice. These consumers are desirable for merchants as 65% earn more than $50,000 annually, with 30% earning more than $100,000.

Zahir Khoja, Afterpay’s general manager for North America, said the historic levels of inflation hitting America have made it more important than ever for consumers to have access to flexible payment options.

“Afterpay allows consumers to safely shop and pay in a responsible way, while also allowing brands to reach highly engaged shoppers who often become repeat customers,” Khoja said.