Afterpay the modern layby to launch at BIG W online
Article by Roisin Kelly-Goldsmith
BIG W has teamed up with Afterpay, in a partnership that will soon allow participating customers to order items via its online store, and pay off purchases over a 6 to 8 week period.
The alternative payments provider announced the news today on behalf of BIG W, the budget-friendly retail chain owned by Woolworths Group Limited.
“Afterpay is thrilled to partner with BIG W and to provide our modern day lay-by service to Australian customers and retailers,” said the CEO of Afterpay, Nick Molnar.
“From a customer perspective, customers love that they can take the product home straight away and all payments are completely automated. It is truly a win-win for Australian customers and retailers.”
For BIG W customers, the partnership means that they can browse and buy online, completing the transaction via Afterpay when prompted and pay off their purchase over a period of 6-8 weeks, rather than upfront.
The last big retailer before BIG W to take up the latest shopping craze was just over a month ago, when Myer signed on for the service to benefit its online shoppers, followed by the stationary giant Officeworks.
Young people from the millennial generation are the biggest Afterpay uptakers, with the payments provider stating that they account for 70% of its customer base.
More than half a million consumers continue to use the service - compatible with all Australian-issued Mastercard and Visa credit cards - which is offered at dozens of bricks and mortar stores and online.
In Molnar’s view, it’s a useful resource for retailers too because unlike traditional layby, Afterpay transactions don’t take up warehouse space.
“Lay-by is still a cornerstone of Australian retail and retailers offering lay-by are looking to Afterpay to reduce storage requirements and the manual administration and cost burden typically associated with this activity,” he explained.
Once it launches some time this month, BIG W shoppers will have the ability to sign up for Afterpay and make virtual purchases.
How Afterpay works: Payments are split into four installments and users have six or eight weeks to repay their debt (depending on whether they’re a new or returning customer), fee-free and without an interest rate. For a thorough rundown on Afterpay, visit our ultimate guide on it here.