Less than a year since launching in the US, Australian-based Buy Now, Pay Later (BNPL) service, Afterpay has reached its milestone one millionth customer.
Taking the stage at Shoptalk in Las Vegas on Monday, Afterpay announced the acquisition of its one millionth customer. According to the BNPL solution provider, its recent US customers include the likes of Forever 21, Sunglass Hut and DSW, to name a few.
“This is a huge moment for retail and savvy shoppers – we’re thrilled to reach the 1 million customer mark in the US,” said Nick Molnar, CEO and Co-Founder of Afterpay.
“We only launched last May, so the customer uptake and demand for Afterpay demonstrates a generational shift in how millennials are spending when they shop. More than a million people in America have shown they welcome an opportunity to manage their budget and enjoy the products they love right away without having to deal with any high-interest debt.”
To celebrate its milestone achievement, Afterpay’s retail partners in Australia and New Zealand will reportedly be offering exclusive discounts to shoppers on March 13 and 14.
Afterpay’s US success comes during a tumultuous time for the Australian company, with ongoing probes into the Buy Now, Pay Later industry questioning Afterpay’s compliance with consumer credit protection laws. Other BNPL solutions, such as Zip Co have also been subject to the inquiry.
However, despite regulatory concerns over the growing fintech sector, Aussie consumers, much like their US counterparts, are adopting BNPL as a viable payment solution for their retail purchases at a staggering rate. According to Power Retail’s first Spotlight Series Report, ‘Buy Now, Pay Later: Fad or Future?’ 1.8 million Australian consumers are actively using a BNPL service, representing a staggering growth rate of 120 percent per annum.
According to Grant Arnott, the managing director of Power Retail, retailers and consumers alike are starting to take note of BNPL services, which is making it a mainstay in the online retail industry.
“In a few years’ time it will no longer be an alternate payment option, it will simply be expected by consumers,” he says.
Mark Fletcher, the insights manager and author of the report agrees with this, saying he expects to see the Australian industry mimic international markets when it comes to the increasing adoption of BNPL services. “I think we will follow the example of Sweden”, he says, “where BNPL now accounts for 30 percent of all transactions”.
The full Spotlight Series report is available for purchase, here!