Sourcing Journal – Levi’s Taps Afterpay for “Buy Now, Pay Later” Payment Solution
June 10, 2019
By Angela Velasquez
Denim shoppers can “buy now, pay later” for the latest pair of Levi’s.
The U.S. denim brand is the latest to partner with Afterpay, the digital platform that offers consumers interest-free installment plans for in-store and online purchases. The payments company recently announced new partnerships with Levi’s, Ray-Ban, O’Neill and Tarte Cosmetics.
Often described as “layaway for millennials,” Afterpay facilitates commerce between retail merchants and their end customers by offering a “buy now, pay later” service that does not require customers to enter into a traditional loan or pay any upfront fees or interest.
Payments are broken down into four equal installments that are automatically deducted from the consumer’s bank account every two weeks.
In March, the Australia-based “fintech” company announced that it reached one million U.S. customers just 10 months after launching in the U.S—echoing reports that millennial consumers are weary of traditional credit cards and bank loans.
“As more millennials and Gen Zers shop for brands ranging from American icons like Levi’s, Ray-Ban, Jeffree Star Cosmetics and O’Neill to younger, category-shaking brands like Tarte Cosmetics, they are showing how important it is to them to be able to manage their budgets responsibly and never be caught off guard by surprise interest payments or fees,” Afterpay CEO and co-founder Nick Molnar, said.
Since its U.S. debut, Afterpay has signed more than 3,300 U.S. brands and retailers onto the platform. Anthropologie, Bandier, Forever 21, GOAT, Reformation, Revolve, Steve Madden, True Religion and Urban Outfitters are among the millennial-centric brands that joined.
Other payment companies have attracted denim brands, too. Upcycled denim brand Denimrush has partnered with Swedish fintech company Klarna, and Affirm, which offers consumers three payment options, works with brands like Barbell, Good American and Universal Standard.