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Innovation

Officeworks signs up for Afterpay

Fintech start-up Afterpay has scored another big retailer, Officeworks, to offer customers its ‘buy now, pay later’ online payment platform.

Afterpay, which listed on the share market in May 2016, has already partnered with Myer, Country Road Group, Billabong, Booktopia and Noni B Group.

The payments platform allows customers to buy and take home items instantly and to pay them off later in instalments.

It is one of a number of platforms in Australia – such as zipPay and OpenPay – to offer this service, which has become increasingly popular with customers.

Speaking to Internet Retailing, several online retailers have described it as a ‘no-brainer’, since they report an increase in conversions and basket size after implementing a ‘buy now, pay later’ option at checkout.

“Overall, the average transaction value is higher [for people who pay with Afterpay], but in terms of what they’re buying, there’s no pattern,” said Tim Halaska, head of e-commerce and customer service at Toys ‘R’ Us.

“We assumed it would be the large, bulky stuff, but we’ve seen people getting the everyday things they would buy anyway – just more of it,” he said.

Afterpay managing director Nick Molnar says the Officeworks deal is an important move into new product categories.

“We are thrilled to be able offer more diverse products through Afterpay with such an established retailer,” Molnar said.

He said the company was focused on maintaining a strong pipeline of Australia’s leading brands and retailers.

Officeworks will offer Afterpay’s payment service to its online customers this month.

Afterpay shares, which closed at a nine-month low on Friday, were up 3.5 per cent at $2.05 at 1025 AEST.

AAP

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