Spending globally on Buy Now, Pay Later (BNPL) has increased rapidly over the last two years, up +300%.1 Its hugely popular with Millennial and Gen Z consumers, who make up ~70% of Afterpay and Clearpays global active customers. 1
With rising global inflation and slowing economic growth, merchants need to find new ways to cut through the noise and engage with customers. Those that can leverage BNPL platforms, like Afterpay and Clearpay, to attract and convert more customers will be best placed to grow their sales no matter the market conditions.
Why size matters!
More than 122,000 active merchants around the globe have signed up to the benefits of Afterpay and Clearpay.2
in us, Afterpay hosts the largest online BNPL marketplace with approximately 6,300 retailers. That's more than 1.5 times the next largest BNPL provider.3
Afterpay in the US also leads the market for merchant diversity, with around twice the number of small and black-owned businesses promoted on its store directory than its competitors.3
like Afterpay in the US, Clearpay is also a leader. In the UK BNPL market, it has 1.7 times more merchants than its closest competitor, making it a force to be reckon with!4
by partnering with a market leader, merchants that use Afterpay and Clearpay generate new revenue3,4 through:
- larger customer basket size
- exposure to new customers
- improved checkout conversion
- rise in repeat purchasing; and
- increased brand relevance.
According to an Accenture study, 5 the average Australian small and medium business (SMB) merchant sees a 13% uplift in revenue by partnering with Afterpay, which equates to around $32,000 in new revenue annually. That's largely thanks to:
- larger basket sizes
- exposure to new customers
- better conversion rates at checkout; and
- higher repeat purchasing rates.
Beat rising costs with BNPL
Merchants that offer Afterpay and Clearpay don't only benefit from increased revenue, but they also reduce their costs3,4 on Afterpay and Clearpay sales thanks to lower:
- Customer service costs
- customer acquisition costs
- return rates
- marketing costs; and
- fraud rates.
The cost of customer service is 1.25X lower3 on Afterpay in the US and 1.24X lower4 on Clearpay in the UK. This is driven largely by an increase in the share of online sales. This isn't surprising when you consider that the proportion of online sales through Afterpay in the US is 11 times greater than through non-Afterpay channels3 and is 4 times greater than non-Clearpay channels.
For retailers, dealing with returned unwanted merchandise is costly and time-consuming, not to mention environmentally unsustainable. Partnering with Afterpay is one way to reduce return rates.
In Australia, the average return rates for retailers are between 9 20% of purchases. Compare that with Afterpay return rates, which are much lower at just 2 6 % of purchases.5 When you factor in the cost of shipping, handling, and person-hours, the savings can be significant.
How Afterpay and Clearpay work for you
Afterpay and Clearpay integrate seamlessly with your OpenCart website and can be up and running in as little as a few days with no set-up fees.
- A customer purchases an item from your website and checkouts using Afterpay or Clearpay.
- You receive your settlement fund within days.
- You can track all your orders, download reports, and more through the Business Hub.
If you'd like to supercharge sales, lower your costs and get new customers (there are 19 million2 active Afterpay and Clearpay customers worldwide), sign up for Afterpay or Clearpay today.
1. Afterpay FY21 Results Presentation, August 2021.
2. Block Q4'21 Earnings Call.
3 The Economic Impact of Buy Now, Pay Later in the US, Accenture, September 2021
4. Economic Impact of Clearpay in the UK, Accenture, December 2021.
5. Small Business, Big Opportunity report, February 2022