Afterpay, a global leader in the Buy Now Pay Later industry, has signed with Oceanpayment as their first payment full service provider partnership, specialising in the APAC region. Once established, Afterpay will collaborate with Oceanpayment to offer payment services in key markets including the US, Australia, and the UK (where Afterpay is known as Clearpay).
Additionally, Oceanpayment will be the first payment service provider within APAC to support merchants in Mainland China and Hong Kong offering Afterpay’s “buy now pay later” (BNPL) payment product in these key markets. Leveraging their respective core capabilities and resources, Oceanpayment and Afterpay will work closely to help merchant customers expand and extend their business globally.
Source | Afterpay
As the global consumer market is continuously affected by high inflation and other economic uncertainties, consumers are responding with declining spending and have higher expectations on the choices and flexibility of payment options. On the other hand, merchants are seeing increasing revenue from customers using the BNPL product which, with its “zero interest instalment”, has become the preferred payment option of younger consumers like the millennials and Gen Z who consider this as an effective tool for cash flow management.
Research has shown that the adoption of BNPL for online purchases grew by 14% in 2022 with sales revenue growing correspondingly by 27%1. This upward trend is expected to continue with the BNPL product forecasted to achieve a market size of USD 744.06 billion by 20272.
Source | Pexels
About Afterpay:
As the global leader for BNPL services, Afterpay is widely preferred and actively adopted by the younger generations. Currently operating in markets such as Australia, the US and the UK (as Clearpay), Afterpay supports more than 200,000 retail merchants across various industries and has more than 19 million active users today.
Source | Afterpay
Upon selecting Afterpay, the consumer can choose to have the 4 interest-free instalment payments over a span of 6-8 weeks. For high-value items, the consumer can opt for a repayment period of 6 or 12 months, with the purchase amount splits into monthly installments (available only in the US).
Source | Afterpay
The rapid growth of ecommerce around the world has opened up new and exciting opportunities. In their quest to meet the ever-increasing demands of the consumers, cross-border merchants must incorporate these needs in their plans to expand their markets globally. The BNPL option not only meets the multi-dimensional needs of the consumer but also enhances the buying experience, motivating the consumer to buy more and thereby driving revenue growth. By offering BNPL as an option with interest-free instalments, the merchant not only eliminates the need for a one-time cash outflow, minimizing the financial strain on the consumer, but also increases the probability of the purchase of mid to high value items, driving sales and GMV growth.
Source | Pexels
As a global provider of payment solutions, Oceanpayment offers a comprehensive suite of multi-dimensional and customizable products and services that enable the cross-border merchants to meet the needs of demographically diverse consumers in a wide range of countries and regions. With a reach that includes Europe, the US, South America, and Southeast Asia, the service has gained increasing popularity in the respective countries. Merchants looking to expand overseas now have more flexible payment services to offer that would extend their market reach and enhance the shopping experience for their consumers. And this would, in turn drive conversion rates and revenue growth upwards.
References:
[1] Adobe Analytics，2023 Summit Announcement US Online Consumers’Latest Buying Trend.
[2] Marketand Research ，Buy Now Pay Later Global Market Report 2023.
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