In 2019 Afterpay will make its first foray into the UK retail market after its successful launch in Australia. In just two years Afterpay has managed to successfully reshape the way Australian pay for retail goods.
This multichannel platform is integrated not only with pure online ecommerce stores but also retailers with an omnipresence with both online and a bricks and mortar store
What is Afterpay?
Afterpay is a new payment system that allows the customer to receive the goods and pay for them in 4 equal payments, each paid fortnightly from their credit/debit card. Essentially, it is just like a lay-by (lay-away) except you receive the goods straight away. For the customer, there is no interest payable and you are only charged a fee if you miss a payment
For the retailer, once a customer purchases an item the retailer is paid within 24 hours directly to their bank account – much like an banking settlement. While the retailer is charged around 4-6% per transaction, Afterpay absorbs any chargebacks.
Why you should get Afterpay on your Website
Afterpay has successfully proven itself to increase retail sales by allowing the customer to receive goods before making payments. Top retailers using Afterpay have found increased conversion rates due to:
- Certain % of customers become loyal to the payment system. Similar to those who will only pay with PayPal, in time Afterpay customers become repeat Afterpay customers.
- Because of this loyalty Afterpay customers will actively seek our at preference a retailer offering an Afterpay method.
- By removing the challenge for a customer to pay upfront, and without interest you are removing the stumbling block of one upfront payment.
- Given that success ecommerce websites strategically focus on removing obstacles in their sales funnel, Afterpay offers a new, innovative payment opportunity that can only increase your ROI and decrease your bounce rate.
How to add Afterpay to your Website
Firstly, you need to become an Afterpay merchant. Contact Afterpay to apply. Once you have approval download the Afterpay plugin/app for your website and install. Keep in mind, if you have a highly customised WooCommerce or Magento store this can cause some conflict within programming. At Lime Web Development, our team can monitor the installation and should their be any problems we can get on top of this quite quickly.
We have found that to succeed with Afterpay sales you will require some programming. This includes the following:
- Adding the Afterpay widget to the product page, outlining the more affordable 4 instalments*
- Make Afterpay logo prominent throughout the sales funnel
- Customise Afterpay in the checkout
- Include Afterpay payment option in the shopping cart
Types of stores using Afterpay:
- Fashion for women, men and children
- Pet stores
- Home and Entertainment
- Sports and Outdoor
- Tyres and Automotive
- Travel and experiences
- Lingerie and Swimwear
- Supplements and food
- Services including hairdressers and dental
I have Afterpay, now what?
Let your customers know! Send out an email to all your existing customers to explain the benefits of Afterpay and advertise this new payment method on all your social media channels.
Be sure to remind your customers in every email campaign that they can enjoy their order now and pay in 4.
To help your explanation, include an Afterpay page on your website with directly from your footer. On this page explain in easy terminology the benefits of Afterpay with a link to all Terms and conditions on the Afterpay website
What websites can Afterpay be installed on?
Afterpay will integrate with both WooCommerce and also Magento ecommerce platforms. For further customisation and installation assistance, contact us for assistance.