#POSFinance #BNPL / Afterpay’s Laura Nadler on the new loyalty program and expansion plans

Afterpay is one of the fastest growing buy now, pay later firms in the world. Based out of Australia, the fintech has recently expanded into the US and is planning to expand to Canada…

Afterpay allows consumers to buy now, take now and pay later with four interest free installments. It’s actually not a traditional loan. We do no credit check, there’s no interest and there’s no way to revolve… In addition to the benefit to consumers of being able to plan and budget and manage their spend, we think there’s great benefit to retailers who get to grow new customers as well as accelerate their sales…

From a consumer standpoint… when you’re checking out, you’re presented with the choice and can choose Afterpay. When you do that, you’ll see what your four equal payments will be, and the app will keep track for you of your payment schedule. We also send you a reminder when when a payment is going to be due, so that you can make sure you plan for that. And for consumers, as long as they’re paying on time, there are no fees and no surprises.

… one one significant tailwind is the fact that many Millennials and Gen Z consumers don’t want to use credit. They really prefer to be able to use their own money, plan and budget.

… we view ourselves as a payment alternative but also as a retail partner and a consumer partner. And what we’re really trying to do is enable consumers to spend responsibly…

… our value proposition is purposefully different: we don’t offer traditional loans, don’t require a credit check, and don’t charge interest. We also take it a step further, and if a consumer is late on payment, they actually can’t use Afterpay to buy more until the repayment is made.

So this helps consumers avoid debt and frankly, helps us manage risk as well. So again, a win-win. We really stand for financial wellness and good payment behavior… A great example of that is the loyalty program that we recently launched… [It] actually rewards consumers for on-time payments, which I think is pretty different from most loyalty programs which encourage spend, giving more points for more spending.

In our program, if you qualify — and you qualify by making on-time payments over time — consumers are able to make some different choices including no payment upfront on eligible orders. Loyalty program members are able to reschedule payment due dates up to six times every year. They can buy gift cards from some new brands on the Afterpay network and receive future exclusive offers from unlimited large launches in partnership with retailers.