How Afterpay’s changes impact business and customers
One of the most popular payment methods used by thousands of Central Queenslanders, Afterpay, is implementing changes this month that will impact all users.
Launched in 2014, then listed on the Australian Stock Exchange in 2016, the “buy now, pay later” platform allows users to purchase and receive goods, then pay them off in fortnightly instalments.
The brainchild of Sydney man Nick Molnar and his then neighbour Anthony Eisen, the digital payment system was worth more than $1.5 billion just four years after its launch and has expanded to the US and the UK.
With more than 8 million customers worldwide, Afterpay propelled Mr Molar to the elite status of Australia’s youngest self-made billionaire in 2020, aged just 30.
Afterpay can be used to purchase everything from cosmetics to clothes, and watches to wallets, plus much more.
Once a user makes an Afterpay purchase and pays it off, interest free without any penalties, their “available balance” increases, enabling them to purchase more expensive goods.
Now the way customers use Afterpay is changing, stepping away from the QR code based scanning, to a digital Afterpay card this month.
The contactless MasterCard is stored in a customers digital Apple or GPAY wallet, which the user taps on the in store payment terminal.
So, how does this effect customers and businesses using Afterpay?
Consumers will have to implement some changes.
“Customers will complete a one-time card set up flow via the Afterpay app to create their Afterpay Card,” the spokesman said.
“For each purchase, the customer will open their Afterpay app to access their card, they can check their available Afterpay amount and then tap their phone on the card payment terminal to make their purchase.”
Businesses established with the payment method don’t need to do anything, Afterpay will set up your store to accept Afterpay Card payments and you are ready to go.
“This change will only affect merchants with an Afterpay in-store offering,” an Afterpay spokesman said.
“We are not making any changes to our online product or settlement if you have an existing Afterpay checkout.
“You will process and settle Afterpay transactions via your relationship with your Merchant Acquirer – the same way you process and settle other card payments.
“If your online business supports Apple Pay checkout, customers will be able to use the Afterpay Card within Apple Pay to complete a purchase.”
The Afterpay car launches this month and the QR code system will be available to customers until July 2021, before it is decommissioned.