American consumers are keen to pay off their online orders in installments — just like their counterparts down under.
The Australian payment service Afterpay said it took just 10 months to reach its one millionth U.S. customer.
Afterpay, which processes roughly 25 percent of all beauty and fashion orders online in Australia, launched its service Stateside last year, linking early on with Urban Outfitters Inc. and setting up shop in San Francisco.
Shoppers who choose the Afterpay option while checking out pay 25 percent immediately and the rest in three installment payments over six weeks. The service, which helps spur full-price sales, has gained traction with Millennials who are debt adverse and link their account to debit cards.
“We only launched last May, so the customer uptake and demand for Afterpay demonstrates a generational shift in how Millennials are spending when they shop,” said Nick Molnar, chief executive officer and cofounder of Afterpay. “More than a million people in America have shown they welcome an opportunity to manage their budget and enjoy the products they love right away without having to deal with any high-interest debt.”
The company now works with more than 2,800 retailers and brands in the U.S., including Forever 21, Morphe, Reformation, Sunglass Hut and True Religion.