Ebay to begin offering “buy now pay later” scheme
Ebay is set to launch a “buy now pay later” scheme next year as it partners with payments giant Afterpay.
Afterpay will launch on Ebay’s Australian platform in 2020, enabling the site’s 11 million monthly users to pay for their purchases from around 40,000 businesses in installments.
The deal is understood to be Afterpay Australia’s biggest to date, although no financial details were made public.
Though it is not yet known if the partnership will be rolled out to other markets, Afterpay recently secured a strong foothold in the UK, signing a deal to offer its payment plan to Marks & Spencer customers.
Afterpay, which trades under the name Clearpay in the UK, also signed deals with Urban Outfitters, Anthropologie, Free People and Boohoo in the UK in June.
The Australian digital payments provider launched four years ago and offers interest free debit-by-instalment services for over 30,000 merchants in the US, New Zealand and Australia, and reported global underlying sales of $2.7 billion in the four months to the end of October.
“The partnership represents Afterpay Australia’s largest online arrangement to date, which allows both companies to align on a mutual approach of adding value to merchants by helping them access new and repeat customers,” Afterpay said in a trading update.