It’s not a traditional lay-by, not a loan or credit agreement, there’s no joining fee and no interest if you pay on time. So, what’s the catch with Afterpay? Well, it seems there isn’t one!
Choosing Afterpay at the checkout means users can shop for their goods today, and receive them as normal but split the cost over four equal fortnightly payments. They pay no more than they would by handing over the cash immediately. Talking Game Changers with Channel Seven’s Edwina Bartholomew, Nick Molnar explains the business and budgeting sense behind the award-winning FinTech company he co-founded – and why the ‘Shop now. Take now. Pay it in 4.’ movement is all about responsible spending.
ASX-listed in June 2016, the Afterpay concept was an instant success with millennials. Encouraged via social media to call their favourite retailers to adopt the scheme, it was their people-power that convinced 10,000 online and shopfront stores to get on board. Explaining the innovative marketing concept, Nick recalls “It was like this tidal wave that came through. The ability to drive a retailer like that, driven by putting the power in millennial’s hands is really, really cool.”
With prominent brands such as Sephora, Myer, Jetstar, Bobbi Brown, The Iconic and Country Road coming to the party (and paying fees for the privilege!), soon an older demographic caught on to the benefits of the scheme as well. With payments spread over multiple pay periods, and 90% of all transactions tied to debit cards, rather than credit cards, it’s perceived by many as a budgeting tool, allowing shoppers greater control over their outgoings.
With upwards of 1.3 million happy customers and over 10,000 retailers currently signed up, we think Nick and the Afterpay team tick all the Game Changer boxes.