Business

Afterpay offers Google and Apple pay in US market

Afterpay offers Google and Apple pay in US market

Australian technology company Afterpay is upping the ante in the US, with plans to offer its buy-now-pay-later service through Google and Apple.

In a statement to the ASX on Wednesday morning, the Australian tech darling announced its US division had partnered with both major digital payment platforms, which will allow customers to use the payment platform within physical retail stores.

The exclusive partnership is the first type of arrangement between a buy now, pay later provider and the major tech giants’ digital payment platforms within the North American market.

Digital laybuy transactions have predominantly only been available via online shopping channels.

Afterpay US chief executive Nick Molnar said the partnership was “critical” to the company’s North American expansion plan, especially as retail trading starts to improve following the COVID-19 pandemic.

“Afterpay and Google Pay give shoppers the ability to choose either physical or online shopping while still being able to budget their own money and avoid expensive loans, interest and fees — which has shown to attract new customers and drive more sales conversion for our retail partners,” Mr Molnar said.

Afterpay offers in-store payment options at selected retailers across Australian and New Zealand. Physical payments are conducted through its digital app.

Afterpay has close to 10 million active customers globally and, in the US, has merchant agreements with Forever 21, Ray Ban and Urban Outfitters.

The company previously said its platform had experienced high adoption rates during the coronavirus pandemic as customers look for budgeting payment methods.

“As we enter the second half of the year and retail re-emerges across the world, it’s critical we help our partners drive business growth, both online and offline,” Mr Molnar said.

Afterpay noted in-store sales in Australia and New Zealand equated to 24 per cent of underlying sales, with approximately 40,000 stores offering the service.

Afterpay has not flagged whether Apple Pay and Google Pay will be available in its Australian, New Zealand and UK businesses.