Afterpay’s ‘Buy Now, Pay Later’ Option Adds New Merchants

Afterpay, a company that specializes in allowing shoppers to have the option to “Buy Now, Pay Later,” has partnered with J.Crew and Ulta Beauty, according to a release.

Shoppers of those companies will soon be able to use the payment option, which is expected to launch between this autumn and the beginning of 2020. The two companies join 6,500 U.S. retailers that already use the service.

Afterpay, based in Australia and part of Afterpay Touch Group, in July received a sales volume run rate of upwards of $1.2 billion from 2 million customers. 

“We are thrilled to partner with Ulta Beauty and J.Crew, to enable them to offer buy now pay later services to their customers,” said Afterpay Co-Founder and U.S. CEO Nick Molnar. “We have seen great success in the U.S. market, supported by the best American retail partners, and we look forward to continuing this momentum with retailers and consumers alike as we head into the Fall.”

Afterpay lets customers make purchases and pay for them in four installments, with no need to get a loan or to pay fees or interest. The service is free if customers pay on time. Afterpay said the service helps “consumers spend money for discrete purchases responsibly, without the ability to extend repayment obligations or the risk of falling into a debt trap.”

The company notched $221.08 million (A$317 million) in new capital via a share placement last month, which involved the co-founders and former director selling a total of 4.5 million shares at A$23 piece for the equivalent of A$103 million. Also, ThinkSmart Europe Limited has sold nearly all — 90 percent — of its share capital in ClearPay to Afterpay.

With that deal, Afterpay is acquiring ClearPay’s contracts with service providers, as well as employees with local knowledge of the U.K. market. ClearPay enables retailers to allow shoppers to make purchases of up to £450 at the point of sale and spread the cost over three monthly, interest-free payments.