How often do you fill up your shopping cart online but forget to actually finish making your purchase? If you're anything like us, it happens at least 3x a week. You just wanted to shop around and see if your favorite store had some clothing you might like and if there were any good deals.
Urban Outfitters, Anthropologie, and Free People now have a new payment option available. And it is almost too good to be true! Welcome to the life of Afterpay.
Shoppers can select to pay with Afterpay (if their purchase is between $35 and $1,000). The payment plan breaks the cost into 4 payments instead of one big one. Shoppers will need to pay the first of the payments immediately, then the other three payments will be taken out every two weeks after that. The best part is this doesn't cost any extra money.
Now, don't confuse this for a credit card and payments with interest. Instead, Afterpay lets people shop now and pay later, but they are still paying something immediately at the time of check out.
According to Afterpay, there are absolutely no extra charges – so long as all of your payments are made on time.
If you make repayments on time, you'll only ever pay the price of the item you've purchased. The only fees that may apply are late fees for missed payments.
This payment option is a way to increase sales by 20-30%, as Afterpay SEO, Nick Molnar, said that the program helps increase conversion rates. This is also a way to get customers to pay full price for an item, rather than waiting for coupons and sales. Even though they are paying in installment plans, ultimately shoppers are paying full cost for their items.
This is a smart tactic from UO, as it gets shoppers to spend more but think that they are actually saving money in the process!
H/T: Business Insider