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Afterpay announce eBay Australia buy now pay later deal
Afterpay have announced a deal with eBay Australia to offer their services on the marketplace. Afterpay (trading in the UK under the Clearpay brand), offers the ability for consumers to buy now and pay later with interest-free instalment plans.
The service caters to a shift in payment behaviour amongst Millennial shoppers who have a preference towards debit cards and an aversion of credit. Clearpay is a solution to cater to this generational shift by offering customers an alternative to credit.
It is expected that the Afterpay service will go live in the 2020 calendar year. eBay Australia is the largest shopping site in the country with 11-million unique monthly visitors and the deal will give 40,000 Australian small businesses the ability to access the Afterpay service for their eBay customers.
The partnership represents Afterpay Australia’s largest online arrangement to date which allows both companies to align on a mutual approach of adding value to merchants by helping them access new and repeat customers.
In Australia and New Zealand, customers who joined Afterpay during the financial years 15-17 are now purchasing, on average, approximately 22x per year. Newer cohorts are following a similar upward trend, with the financial year 18 and financial year 19 cohorts purchasing, on average, 14x and 7x per year respectively.
What’s additionally interesting about this deal is that PayPal already offer buy now pay later services in many territories around the world but of course eBay are planning to split entirely from their reliance on PayPal by 2021. There’s nothing to suggest that eBay are planning a wholesale replacement of PayPal credit, but offering alternative services certainly seems to be a pattern – we’ve already seen Santander backed Asto touted to begin offering business cash advance loans to eBay sellers in the UK.
Any scheme that facilitates an increase in personal debt, at a time when personal debt is back at record levels, just pushes us ever closer to another global financial crisis.
There may be a huge backlash.
Pretty sure buy now pay later has been around for decades. Handy system to have.
Hi What about the UK? will we be allowed to use this company? Only PayPal is Allowed to operate on the eBay web site. PayPal Treats UK Consumers with Contempt,EU/UK Laws with Contempt. I am going through a Court Claim against PayPal over their LIES and for a Breach of Contract.Why is this American Company Allowed to Rip off Consumers? PayPal have Frozen my Account since May 2015,Refused to Accept payments for items I bought on eBay,refused to Process a payment demand from eBay over their Fees. PayPal have been ordered by the Court to submit a Defence to my claim by 25 November 2019.I Look forward to that Defence. Regards William. London. UK