Urban Outfitters has teamed up with Afterpay, a digital platform that offers installment plans for online purchases. The partnership with all of the Urban Outfitters brands, including Anthropologie and Free People, is Afterpay's first go in the United States.
Afterpay's appeal for shoppers is that they can purchase the items they desire without taking out a loan or opening a credit card, according to Nick Molnar, founder and CEO of Afterpay. And in terms of retailers, the platform increases conversion rates and incremental sales by 20% to 30%.
"Millennials have formed an aversion towards credit cards and have a clear preference of spending their own money and using debit cards as form of budgeting. Afterpay allows someone who is buying a $200 dress to pay in four payments of $50 without any additional interest or taking out a loan," Molnar told FierceRetail.
How it works: Consumers can receive a product immediately and pay for the purchase in four, interest-free installments. Afterpay assumes the risk on behalf of the retailers, and the platform can be easily integrated with existing infrastructure.
Founded in Australia in 2015, Afterpay works with more than 14,000 retailers in Australia including Sephora and Lululemon. The company currently processes more than 25% of all online fashion and beauty transactions in Australia. The company plans to expand its U.S. presence in the upcoming months.
“Afterpay has signed over 50 fashion and beauty retailers and we are excited to bring these amazing brands live on the platform in the next month. We have already seen great results since launching with Urban Outfitters and other brands, and we look forward to introducing Afterpay to the entire retail community in the coming months," Molnar said.