TORONTO, September 22, 2022–(COMMERCIAL WIRE)–Today, Square is launching its first integration with Afterpay in Canada, bringing Buy Now, Pay Later (deferred payment) functionality to merchants using Square eCommerce products across the country. The integration will enable Square merchants in Canada to offer a deferred checkout experience to their customers, helping them attract new shoppers and increase revenue.
“We’ve used Square Online since our inception and it’s been fantastic. We also found that deferred payment options typically lead to a 20-30% increase in sales. So when we found out we could now offer Afterpay, we jumped on it,” said Susan Pond, owner of Fabulous finds online, an online marketplace for patio furniture and home goods based in Vaughan, Ontario. “Sometimes people are looking for big-ticket items they can afford, but prefer the flexibility of paying in installments to avoid high fees and credit card interest. Afterpay allows customers to split their payments, without us having to bear the burden. This is a significant advantage for our company. »
The buy now, pay later model has already taken off in Canada, fueled by the accelerated shift to e-commerce during the pandemic. According to the data analysis company Research and MarketsDeferred payments are expected to grow 63.5% to $5.9 billion in Canada by 2022. Generation Z and Canadian millennials aged 18-44 are the largest users of deferred payments, according to a recent pilot study made by theConsumer Financial Agency of Canada.
Since its integration in the US and Australia, the combination of Square and Afterpay has already proven to attract new shoppers and increase revenue for merchants of all sizes. Merchants using Square Online see the following impact on their business:
Transaction size is on the rise: In the United States and Australia, the average amount of transactions made with Afterpay is three times higher than purchases made without Afterpay.
Rapid growth in the number of buyers: Globally, we saw a 180% increase in new consumers using Afterpay through Square merchants between February and March 2022.
Significant growth among key business categories: In the United States, retailers that offer Afterpay as a payment option on their website are seeing a dramatic increase in their overall online sales. Men’s and women’s clothing stores grew 17%, specialty clothing and accessories stores 15%, pet stores 13%, sporting goods stores 12%, and jewelry and watches 10%. In both countries, companies in the beauty and personal care sector saw a significant increase in online sales with an increase of 26% in Australia and 16% in the United States.
“From our earliest days, Square has been focused on creating flexible omnichannel commerce solutions to empower entrepreneurs, and the launch of Afterpay in Canada, one of our largest international markets, is another step in that direction,” said the company. Director of Square, Alyssa. Enrique. “Integrating with Afterpay helps us pursue our global expansion priority while bringing even more businesses of all sizes into the Square ecosystem. »
“In the short time they’ve been together, Square and Afterpay have already proven they can attract new shoppers and drive significant incremental revenue for businesses,” said Nick Molnar, co-founder of Afterpay and Senior Director of Afterpay at Square. “Whether it’s large, well-established businesses, small startups, or everyone in between, we hope to give Canadian merchants the tools to attract young, engaged shoppers who prefer to use Afterpay for flexible shopping for everyday essentials. »
Afterpay is available today for eligible Canadian merchants using the store square online sale and the links Square Pay Online for electronic commerce. These merchants can try Afterpay at no additional cost until December 31. Merchants can access Afterpay from the Account & Settings section of their Square Dashboard and choose to receive early access to Afterpay now. Automatic activation will roll out to eligible Square eCommerce merchants in the coming weeks. The Post Pay option can be easily enabled or disabled at any time in the Account & Settings section of the Square Merchant Dashboard. During the promotion period, Afterpay transactions are processed at standard commercial e-commerce processing rates. Square merchants receive the full proceeds of each sale immediately (minus associated transaction fees and applicable taxes), while consumers pay in four installments. For more information, merchants can contact Square Sales or visit square.ca/buy-now-pay-later.
Square helps merchants more easily manage and grow their businesses with its integrated ecosystem of commerce solutions. Square offers purpose-built software to manage complex restaurant, retail, and professional services operations, versatile e-commerce tools, integrated financial products and services, payroll and workforce management features, and many other possibilities that work in harmony to save you time. and effort to merchants. . Millions of merchants around the world trust Square to power their business and build a strong foundation in the marketplace. Square is part of Block, Inc. (NYSE: SQ), a global technology company focused on financial services. For more information, go to www.square.ca.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220922005010/en/