How Afterpay's Pay Monthly product works

Created to offer more choice and flexibility at the checkout, Afterpay’s Pay Monthly solution has been adopted rapidly by consumers.

In an ever-evolving retail landscape, Afterpay’s expanding product suite continues to meet the changing needs of both consumers and merchants, specifically its Pay Monthly option.

To provide eligible customers with more choice at checkout, Afterpay’s monthly solution is a longer-term consumer lending product for larger basket sizes that gives consumers more flexibility to shop for the things they want and need.

Find out more about how we’re driving incremental results to merchants through our Pay Monthly product.

What is Afterpay’s Pay Monthly solution?

Our Pay Monthly product is a flexible payment option that allows consumers to spread the cost of their higher value online purchases across six to twelve months*. Customers can use Afterpay to purchase from categories including travel, home furnishings, jewelry, luxury fashion, petcare and more. Pay Monthly is designed to be user-friendly and transparent, with transparent fees, making it an attractive alternative for budget conscious shoppers.

How it works for consumers.

The long-term installment solution is simple, transparent, and enables responsible spending for big ticket items or experiences. With visible consumer-friendly terms, consumers avoid an endless revolving debt cycle and can benefit in a few various ways:

More choice and transparency at checkout: When making a purchase online, consumers can select Afterpay’s Pay Monthly option at available merchant partners for higher ticket purchases. Before checking out, eligible customers see what interest they will pay on the principal over a six or twelve month period and only pay what they agree to.
Quick approval process: Afterpay was founded on the principle of financial inclusion with customer protections built in. This means customers checking out with Pay Monthly go through a quick and simple approval process through a soft credit check, which does not impact credit scores.
Flexible payment plans: Once approved, consumers can choose from a range of payment plans, typically spanning six or 12 months, depending on the merchant’s offerings.
Transparent fees: One of the standout features of Afterpay’s Pay Monthly solution is that consumers never pay compounding interest, with an annual percentage rate ranging from 6.99% to 35.99%, and consumers never pay late fees.*

Benefits for merchants.

As a preferred payment option for more consumers today, flexible payment options are becoming a crucial part of a merchant’s strategy in order to unlock access to valuable spend. Specifically, merchants stand to benefit significantly by adding Pay Monthly to their existing payment offering in the following ways:

Increased sales and average order value: By offering more flexible payment options, merchants can attract a wider customer base, who prefer to pay over time. This flexibility often leads to higher conversion rates and increased AOV.
Improved customer loyalty and retention: Providing convenient and transparent payment options can enhance the overall shopper experience, fostering customer loyalty and encouraging repeat business.
Reduced financial risk: Afterpay assumes the financial risks associated with its Pay Monthly solution. Merchants receive full payment upfront, while Afterpay manages the consumer’s installment plan, mitigating the risk of late or missed payments for the merchant.

^{Kendra Scott offers Afterpay’s Pay Monthly option for purchases over $400.}

What’s next?

By integrating Afterpay’s Pay Monthly solution, merchants can enhance their payment offerings and stay ahead in the competitive retail landscape.

If you're looking to include our pay monthly option for higher ticket purchases, then use our on-site messaging tool to promote Afterpay on your product and cart pages. It is easy to implement, requires no maintenance and is highly customizable. Our merchants use this feature on their product details page and at checkout to display the most relevant message to customers based on available Afterpay payment products.

And if you have a Shopify website, find our guide on how to promote Afterpay’s Pay Monthly through on-site messaging here.

*You must be 18 or older, a resident of the U.S. and meet additional eligibility criteria to qualify. Loans through the Afterpay Pay Monthly program are underwritten and issued by the First Electronic Bank. A down payment may be required. APRs range from 6.99% to 35.99%, depending on eligibility and merchant. As an example, a 12 month $1,000 loan with 21% APR would have 11 monthly payments of $93.11 and 1 payment of $93.19 for a total payment of $1,117.40. Loans are subject to credit check and approval and are not available in all states.

Valid debit card and acceptance of final terms required to apply. Estimated payment amounts shown on product pages exclude taxes and shipping charges, which are added at checkout. Click here for complete terms.

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