About Afterpay
Afterpay is a "buy now, pay later" (BNPL) payment service, founded in 2014 in Australia and acquired by Block, the company behind Square and Cash App, in 2022. It lets shoppers receive their purchase immediately and pay for it in four interest-free installments, usually every two weeks.
How it works:
At checkout, the customer chooses Afterpay and pays the first installment. The remaining three are charged automatically. Customers pay no interest if they pay on time, and the merchant pays Afterpay a fee and receives the full amount upfront.
Benefits for merchants:
Higher conversion rates, larger average orders and access to younger shoppers who prefer not to use credit cards.
Afterpay is available in Australia, New Zealand, the United States and Canada, and operates as Clearpay in the United Kingdom. It is common on fashion, beauty and lifestyle online stores, often integrated through Shopify, WooCommerce or other platforms.
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