FinTech: Now, Cash Back With BNPL, Thanks To Rakuten-Afterpay Tie-Up
The latest BNPL twist is intended to help shoppers ease the financial stress on their wallets this holiday season.
Buy-Now-Pay-Later (BNPL) leader Afterpay (ASX: APT) and shopping rewards and cash back program Rakuten have come together to launch BNPL with the added incentive of cash back. Savvy shoppers looking to make this holiday season a bit easier on their budgets can receive elevated incentives along with the convenience of paying in installments. (CISION PR Newswire)
Best of two worlds?
Rakuten and Afterpay users can now shop at participating merchants like MAC Cosmetics, Crocs, Ulta Beauty, Urban Outfitters, Anthropologie, Free People, Ugg, Ray-Ban and many more, and earn cash back while opting to pay over time in four, interest-free installments.
Statistics provided by the companies show that Rakuten members have earned $3.5 billion in cash back just for starting their shopping at Rakuten.com, in the Rakuten mobile app, or with the Rakuten browser extension. On the other hand, Afterpay’s U.S. customers could save up to $459 million in credit card fees and interest in 2021 by making purchases with Afterpay instead of a credit card.
The combined offering also has benefits for merchants such as higher conversions and average order values.
Unique two-in-one solution
“Offering unique deals and incentives is a key strategy for driving conversions of more expensive, luxury products,” said Kristen Gall, president at Rakuten Rewards. “In fact, luxury items saw an 86% sales lift over non-luxury items in a recent Cash Back promotion – showing Cash Back is universally valued, and not just by habitual coupon cutters. We’re thrilled to partner with Afterpay to offer our retail and brand partners the opportunity to deliver the convenience of Buy Now, Pay Later that will help give their customers the ability to receive Cash Back on purchases immediately while paying over time, interest-free.”
“Working with Rakuten, we are able to help consumers spend responsibly during the busiest shopping season of the year, while also providing merchants with a two-in-one solution to deliver new customers and drive higher conversion rates,” said Melissa Davis, Chief Revenue Officer at Afterpay. “Heading into this holiday season, we couldn’t be more excited to join forces with Rakuten for the benefit of shoppers and merchant partners alike.”
Related Story: BNPL Was “One Of The Stars” Of The Holiday Season For PayPal
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