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RY Reaping Benefits of AfterPay
Six months ago new payments service AfterPay made its debut, and befitting an April Fools’ Day announcement, it sounded far too good to be true: an online payments platform that allowed customers to defer payment for their purchase for another day.
Half a year on, retailers that have brought the system onboard, including the likes of Wildfire Sports and Princess Polly, have some compelling reasons to keep it.
Australian beauty pureplay RY.com.au is the latest to implement the new service into their sales channel, with a unique proposition for cosmetics shoppers online – try before you buy. RY has also introduced a number of other AfterPay driven payment options, including up to four installments and the option to return the purchase (recieved before any payment is sent) without paying a red cent.
“Afterpay has seen fantastic results across the online retail market, materially increasing conversion rates and notably basket sizes of partner retailers from 20-70 percent,” claimed Nick Molnar, CEO of AfterPay. “Afterpay has put the power and flexibility of shopping in the Australian consumers’ hands and the market feedback has been overwhelmingly positive.”
RY themselves confirmed Molnar’s statement, issuing a press release claiming that the retailer has seen a 70 percent jump in its average basket size since incorporating AfterPay last month. The trial period with RY saw over 500 customers try AfterPay, which RY expects to be especially appealing over the upcoming Christmas sales period, when more families will be likely to want to spread their spending away from the single holiday hit.
AfterPay, the brainchild of IceOnline founder Molnar, officially launched in July during the Online Retailer event in Sydney, on the strength of $8 million in investment backing. Despite terms that may strike fear in a retailer’s heart, AfterPay takes the full burden of the financial risk of each transaction, paying retailers on behalf of customers while negotiating payment with the customer directly.