Need to Know
- Australian fintech Afterpay, the leader in ‘Buy Now, Pay Later’ payments, has selected Marqeta as its US partner to help accelerate its growth across North America.
- The Afterpay platform allows merchants to give shoppers an option to receive products immediately and pay for in four simple installments over a short period of time. The service is free for customers who pay on time—usually every two weeks.
- Marqeta is a modern card issuing platform with an open-API platform. It boasts a quick onboarding process for new merchants and works with fintech disruptors across almost every major vertical.
- Marqeta has issued close to 150 million cards to date and operates globally in the US, Canada, Europe and is certified to process payments in 10 markets in Asia-Pacific through a partnership with Visa.
- Afterpay is currently offered by more than 43,000 merchants worldwide and used by more than 7 million customers globally.
The rise of ‘Buy Now, Pay Later’ payment options indicate a shift in online consumer behavior, and as a leader in the sector, Afterpay wants to make a bigger splash in the US market.
Currently, the Afterpay platform is offered by over 43,000 retailers and used by over 7 million people globally. Through its new US partnership with Marqeta Afterpay will be able to accelerate its growth in the US market and support new innovative product offerings for its customers.
“Afterpay helps the world’s best brands connect with a new generation of customers who want to shop in a way that gives them control and the ability to budget their own money,” said Kareem Al-Bassam, chief payments officer for Afterpay in a release. “For this reason, we are seeing tremendous business momentum. This new partnership with Marqeta provides us with a platform that will help us scale our US business.”
Afterplay’s platform allows merchants to give shoppers the option to pay for purchases in four installments over a short period of time, usually every two weeks. The service is free for customers who pay on time, though if they miss a payment, they are charged interest.
Marqeta is an open-API platform card issuing solution that has the ability to quickly onboard new merchants, powering a unified virtual experience for Afterplay users. Together, Afterpay can offer its services to merchants operating through the Marqeta platform.
“This partnership is yet another validation that Marqeta is the natural choice for developers with true innovation and scale in mind. When the best technology comes together with aligned cultures and strong partnership, extraordinary outcomes are possible,” said Omri Dahan, Marqeta’s CRO in the release.
Changing online customer behavior is causing a surge in the popularity of the ‘Buy Now, Pay Later’ payment option. Popular with customers looking for alternatives to traditional credit cards, BNPL gives shoppers better control over the ability to budget their money.
In a partnership with Klarna, Fast-fashion giant H&M recently launched the service across all channels hoping to reinvigorate the clothing brand. Visa also recently partnered with Splitit, allowing its merchants to offer customers different payment options including the ability to pay up to 24 months later with no interest. But perhaps the biggest indicator of all lies in the rapid growth of pay later fintech platform Sezzle. Launched in 2016, Sezzle recently announced it has surpassed one million active customers and 10,000 merchant partners, big numbers in a competitive marketplace.
Marqeta has issued close to 150 million cards to date and operates globally in the United States, Canada, Europe and is certified to process payments in 10 markets in Asia-Pacific through a partnership with Visa.