Young woman shopping on smartphone with credit card - Afterpay logo

Afterpay Customers Save Up to $459 Million in Fees by Not Using Credit Cards


New research conducted by Accenture reveals that in 2021, Afterpay, the leader in “Buy Now, Pay Later” payments, drove $4.5b in net benefits to merchants, including $8.2b in incremental sales for retailers and SMB merchants, as they forge their way through the pandemic in 2021.

US Economic Impact of Buy Now, Pay Later highlights the benefits Afterpay has had on the United States economy – including driving additional business for retailers and helping consumers avoid credit card interest and fees.

The $8.2b in incremental sales for retailers in 2021 is primarily attributed to Afterpay’s impact on incremental sales through improved online checkout conversion rates, larger customer basket size, exposure to new customers, increased customer engagement, and a rise in repeat purchases. Afterpay will create $590m in merchant cost savings in 2021, with over 80% of the savings coming from lower customer service and acquisition costs.  

The report also found that Afterpay’s U.S. customers could save up to $459m in credit card fees and interest in 2021 by making purchases with Afterpay instead of a credit card, equivalent to $6 per order. Afterpay users are more than twice as likely to make repayments on time compared to credit card users.

Summary of The Accenture Report Regarding Afterpay

  • Merchants using Afterpay gain $4.5bn in net benefits in 2021, including almost $1.2bn in net benefits for SMBs
    • This includes $8.2bn in new revenue in 2021
    • The largest portion of new revenue is derived from larger basket sizes
    • The average merchant was able to obtain almost 13% more new customers
    • Afterpay created $590m in merchant cost savings in 2021, with almost 50% of the saving in lower customer service costs
  • Consumers are estimated to save up to $459m in fees and interest by making purchases with Afterpay instead of credit cards, equivalent to $6 per order
  • Afterpay fashion spending is equivalent to 6.5% of US fashion eCommerce
  • Afterpay spending helped support 70,000 jobs in the American economy in 2021.

“After conducting this analysis of the economic benefits of Afterpay, it’s clear why the service has exploded in popularity around the world. The platform delivers a rare “win, win”- in which consumers are offered a better and more economical way to pay for things they want and need. This, in turn, drives incredible value to merchants who acquire young, engaged consumers who become repeat shoppers –  ultimately making Afterpay an invaluable sales channel for these merchants.”Andrew Charlton, Managing Director, Accenture

Afterpay offers consumers a wide network of nearly 100,000 global retailers, which allow customers to receive items immediately and pay over time, without revolving debt or paying interest. Merchants benefit from the company’s highly engaged customer base, as the Afterpay Shop Directory generates an average of one million merchant referrals globally per day.

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