Afterpay brings money management into fashion
Article by Kelly Emmerton
New figures from retail payment platform Afterpay show that millennial fashion lovers are driving demand for the modern layby technology, but are mostly concerned with their budget’s bottom line.
While Afterpay processes just 3% of total online retail sales in Australia, it's far more popular in the fashion industry, where 15% of Aussie online fashion buys are paid for through the platform.
Fashion brands signed up to the technology include Millers, Katies, Crossroads, Autograph, City Chic and Rivers. Joining them today are a number of other retailers including BONDS, Puma and beauty brands like Sephora, MAC and La Mer.
The new partnerships are in response to “mounting customer demand for more brands especially in the beauty space” according to Afterpay Executive Director Nick Molnar.
“Afterpay has a strong focus on expanding its offering to broader retail categories and consumer demographics,” he said.
“Bringing these fantastic brands onto the Afterpay platform highlights lifestyle purchases are continuing to resonate with Australian consumers – particularly with millennials.”
The millennial demographic makes up almost three quarters of Afterpay’s 840,000 strong customer base, perhaps explaining its growing popularity in the fashion and beauty industries.
But far from frivolous spending, a recent survey revealed that 70% of Afterpay users are primarily concerned with using the platform to manage their budget and take control of their purchases.
That’s a refreshing statistic at a time when millennials have been copping flack for a surplus of avocado on toast breakfasts and have been revealed as the most likely culprits in credit card mismanagement.
Fintech developments have been transforming the way Aussies do their banking lately, with payment technologies like Afterpay, zipMoney and even a Facebook payment platform emerging in the retail payments sector. Other innovators include the new Finch app, another platform aimed at helping millennials balance their social lives with their finances, while new lender Tic:Toc is revolutionising the home loan application process, by promising approval in just 22 minutes.