Buy now, pay later (BNPL) platform Afterpay and Belk department stores on Tuesday (Dec. 7) unveiled a flexible payment program for online and in-store shoppers, giving them the option to pay for their gifts in four interest-free installments.
“We always strive to give customers the best and most convenient options for their shopping experience, and they’ve really responded to the buy now, pay later model, especially younger customers,” said Nir Patel, Belk CEO, in the joint announcement.
Belk said it has seen a 50% jump in average order values since it started offering Afterpay to its customers. Most of those who choose the BNPL option are millennials or Generation Z shoppers, cohorts that are expected to make half of all retail spending by 2030, per the company statement.
“We know that consumers are using Afterpay for everything they want and need in their daily lives, which is why expanding to a retailer like Belk is so important,” said Zahir Khoja, Afterpay’s general manager of North America. “Consumers can shop a variety of brands while avoiding extended debt, interest and hidden fees, and from the response so far, it’s clear that Afterpay customers are seeing the value in Belk as a one-stop shopping destination for holiday gift-giving and beyond.”
More than 20 million North American customers have Afterpay accounts, giving them access to BNPL opportunities at about 100,000 retailers.
Related news: Department Store Retailer Belk Completes Financial Restructuring
In February, Belk completed its financial restructuring, enabling vendors and landlords to receive full payment amid normal ongoing operations at brick-and-mortar stores and its online shopping platform.
As part of the restructuring, Belk obtained $225 million of new capital, decreased its debt by roughly $450 million and lengthened maturities on all term loans to July 2025, according to the announcement.
Belk continues to make improvements to its omnichannel functions and grow its product selections in new areas, such as outdoor, wellness and home.
