Square has launched its first integration with Afterpay, providing “Buy Now, Pay Later” (BNPL) functionality to sellers using Square Online for e-commerce in the United States and Australia.
The product integration becomes available at the same time as the announcement that Block Inc. has completed its acquisition of Afterpay.
In the US, nearly 56% of consumers have used a BNPL service, and the fastest growing consumer segments, Gen-Z and Millennials, comprise 75% of BNPL users. Square sellers can now serve this growing consumer demand, including in markets like Australia, which is Square’s largest market after the US.
The latest Roy Morgan Digital Payments Report shows 16 million Australians aged 14+ (75.5%) are now aware of BNPL services. Awareness of BNPL services has overtaken that of traditional online payment platforms (74.5%) such as PayPal, Visa and Western Union for the first time. Afterpay is the market leader with nearly three-quarters of Australians, 73.4%, aware of the service.
“In joining with Square, Afterpay can now more meaningfully give small and midsize sellers the tools to attract young, engaged shoppers who prefer Afterpay and help these sellers compete alongside businesses of all sizes,” said Nick Molnar, Afterpay Co-Founder. “And this is just the beginning. As part of Square’s powerful ecosystem, we look forward to continuing to more deeply integrate the Afterpay platform to unlock even more value for sellers across the world in the coming weeks and months.”
“We’re thrilled to offer Afterpay to Square sellers on day one. This is truly just the beginning of what we’ll be able to offer sellers, and their buyers, through this acquisition,” said Alyssa Henry, Head of Square. “Our mission is to help sellers never miss a sale, operate more efficiently, better manage cash flow, and improve growth, retention, and acquisition of buyers. Afterpay helps us further this mission. It will also help bring more businesses of all sizes into the Square ecosystem.”
Afterpay is available today to Square sellers, who can try the service for no extra cost until May 10. It will also soon be available on Square’s developer platform and for in-person payments.