Urban Outfitters lets customers ‘buy-now, pay-later’
Urban Outfitters is giving its customers a new way to pay for their online orders.
The women’s specialty retailer is integrating Afterpay, a digital platform that offers interest-free installment plans for online purchases. Through the agreement, Urban Outfitters now offers a “buy-now-pay-later” option that enables customers to pay off e-commerce purchases in installments without entering into a traditional loan, or paying any upfront fees or interest. The program is available online at all of its brands, including Urban Outfitters, Anthropologie and Free People.
Here’s how it works: Customers place an order online at any of Urban Outfitters’ brands. Shoppers pay of the order in four, interest-free installments. Afterpay assumes all non-payment risk on behalf of Urban Outfitters.
The company will launch the program with its Urban Outfitters banner the week of May 21.
The service, which increases conversion rates and incremental sales by 20% to 30%, is already used across more than 14,000 Australian retailers and brands, including Sephora, Estee Lauder, Lululemon, Myer, The Daily Edited, and Stylerunner. However, Urban Outfitters marks Afterpay’s first retail partner in the United States, according to the payment company.
“We look forward to launching Afterpay across our portfolio of brand websites in the U.S. market, beginning with Urban Outfitters this week,” said Dave Hayne, chief digital officer at Urban Outfitters. “Preliminary tests in the U.S. have shown promise, and based on the success Afterpay has seen in Australia, we have reason to believe our U.S. customers will embrace this innovative new payment solution.”
The solution’s integration will contribute to stronger online sales for Urban Outfitters going forward. For the quarter ended April 30, the company’s total sales jumped 12.4% to $855.7 million, beating analysts’ average estimate of $838.1 million. Comparable retail segment sales increased 10%, driven by strong, double-digit growth in the digital channel and positive retail store sales.
The women’s specialty retailer is integrating Afterpay, a digital platform that offers interest-free installment plans for online purchases. Through the agreement, Urban Outfitters now offers a “buy-now-pay-later” option that enables customers to pay off e-commerce purchases in installments without entering into a traditional loan, or paying any upfront fees or interest. The program is available online at all of its brands, including Urban Outfitters, Anthropologie and Free People.
Here’s how it works: Customers place an order online at any of Urban Outfitters’ brands. Shoppers pay of the order in four, interest-free installments. Afterpay assumes all non-payment risk on behalf of Urban Outfitters.
The company will launch the program with its Urban Outfitters banner the week of May 21.
The service, which increases conversion rates and incremental sales by 20% to 30%, is already used across more than 14,000 Australian retailers and brands, including Sephora, Estee Lauder, Lululemon, Myer, The Daily Edited, and Stylerunner. However, Urban Outfitters marks Afterpay’s first retail partner in the United States, according to the payment company.
“We look forward to launching Afterpay across our portfolio of brand websites in the U.S. market, beginning with Urban Outfitters this week,” said Dave Hayne, chief digital officer at Urban Outfitters. “Preliminary tests in the U.S. have shown promise, and based on the success Afterpay has seen in Australia, we have reason to believe our U.S. customers will embrace this innovative new payment solution.”
The solution’s integration will contribute to stronger online sales for Urban Outfitters going forward. For the quarter ended April 30, the company’s total sales jumped 12.4% to $855.7 million, beating analysts’ average estimate of $838.1 million. Comparable retail segment sales increased 10%, driven by strong, double-digit growth in the digital channel and positive retail store sales.