Afterpay has partnered with Wix, to launch a platform that gives Small and Mid-sized Businesses (SMB) solutions to offer buy now-pay later payment options for customers. With it, businesses can create, design, and manage their online selling activities.
According to Afterpay, the platform will help SMBs boost their online sales during the holiday shopping season. Using Wix small businesses can offer pay later options to their customers with no additional integration costs.
The platform will no doubt capitalize on the growing online shopping trend that has seen boosts following younger demographics opting to buy items on a Buy Now and Pay Later (BNPL) basis.
Afterpay and Wix Partnership for Small Business Merchants
Afterpay’s latest offering comes at the heels of a study by Afterpay showing increasing online shopping by young customers. The study reveals spending at small businesses has increased to 147% from January to September for Gen Z (8–23-year-old) and Millennials (24-39-year-old).
Other findings of the study include:
- Since January 2020, BNPL spending has grown 87%, compared to an 18% increase for debit and a decrease of 11% for credit cards.
- Millennial BNPL spend is up to 86% since January and over 200% for Gen Z.
- By 2020, Gen Z and Millennials account for 32% of the total retail spending in the United States.
- Since COVID-19 had negatively impacted consumer spending. But spending by Gen Z and Millennials are recovering fast. Their level of spending is only 5% below pre-COVID spending levels.
- Their share of young demographics’ spending will grow to 48% by 2030, as more of Gen Z enter the workforce.
Why Buy and Pay Later is Appealing?
Buy Now Pay Later’ lets customers make purchases and can pay for them over time. Customers get the option to choose a financing plan and pay in installments instead of having to pay the entire cost up-front thus helping during periods of lean finances.
Often with this arrangement customers pay no interest or low interest. Besides boosting customer experience, the arrangement helps increase sales. Furthermore, it builds customer loyalty by garnering higher customer lifetime value.