Square has launched its first integration with Afterpay, adding buy now, pay later (BNPL) functionality to the Square Online platform in the U.S. and Australia. Retailers can access Afterpay from the Square Online dashboard, which gives shoppers the option to pay for items with four interest-free installments. Afterpay also will be available on Square’s developer platform and for in-person payments in the near future.
“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 now Afterpay Lead at Square in a statement. “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.”
Usage of BNPL services has been growing rapidly in the U.S. Retailers including Amazon, CVS, Kroger, Macy’s, Nike and Walgreens have all added the option through partnerships with Afterpay, and a study by FIS found that BNPL transactions accounted for 29.3% of U.S. ecommerce share in 2020, up from 23.7% in 2019.