Holiday shoppers embraced 'Buy Now, Pay Later" according to Afterpay

Afterpay, a “Buy Now, Pay Later” payment company, saw its average basket size for customers in the US increased by 30 percent when comparing the 2020 and 2019 shopping season.

The popularity of paying in instalments fuelled growth for Afterpay, including traffic to its brand partners as the company saw a 145 percent year-over-year increase in referrals to global merchants from its store directory.

Thermal knits, pajamas and socks from Old Navy topped Afterpay’s list of most purchased items this season. Crocs were also a favourite, alongside fleece-lined boots and slippers.

Shakaila Forbes-Bell, Afterpay’s resident consumer psychologist said: “In times of crisis, consumers seek both simplicity and familiarity, and this influences their shopping practices. During a particularly challenging holiday season, it’s no surprise that shoppers turned to the ‘good old days’ and the associated fashions to bring about a positive emotional response. Nostalgia has been shown to lift our mood, give us a positive outlook and even make us feel physically warm.”

Customers had the option to shop for the holidays with Afterpay both online and in physical stores, as the company’s list of in-store merchants grew throughout the season. More than two million customers have set up the Afterpay Card to shop in person since the offering went live in Fall 2020.

Alex Fisher, VP of Retail for Afterpay said: “As shoppers returned to stores this holiday season, we saw a rise in services like Buy Online, Pick Up In Store (BOPIS) and contactless payments. Afterpay is at the forefront of these safe and seamless shopping experiences. According to a recent survey of Afterpay in-store shoppers, 32 percent of customers had never used contactless payments prior to trying it with Afterpay. We’re proud to be driving the adoption of both contactless payments and flexible spending in stores - meeting the demand for a true omnichannel experience for retailers and shoppers alike.”

The total number of customers that have signed up to Afterpay in the US now exceeds 13 million, and the total number of global retail partners is nearly 64,000.