Trade Me teams with Afterpay for buy-now, pay-later service
- 29 May, 2017 10:45
Offering deferred payments will be optional for traders, but could boost sales.
Auctions giant Trade Me is teaming with Sydney-based Afterpay to deliver deferred payments to buyers.
The new service will allow Trade Me sellers to offer interest-free deferred fortnightly payments to buyers, via Afterpay, later in the year.
Trade Me’s head of marketplace, Stuart McLean, said ASX-listed Afterpay lets buyers get the item in their hands straight away but pay it off in four interest free installments.
“Sellers receive their money straight away from Afterpay and can ship the goods straight away - the buyer then makes their payments to Afterpay,” he said.
McLean said more payment options on Trade Me would help sellers and increase the purchasing power for buyers by minimising the pain on their wallet.
“It’s free for buyers to use: just click ‘buy with Afterpay’, enter a few details and you’re good to go,” he said.
McLean said Afterpay’s merchants in Australia have reported their customers are buying more, and they are gaining customers who might have otherwise have clicked away.
Offering Afterpay on listings is optional and there is a small fee to sellers.
The deal is Afterpay's first international venture, the company said. Trade Me's platform will provide Afterpay a channel to acquire both New Zealand customers and retailers.
“It was very important for Afterpay to find a partner who was equally passionate about providing an unashamedly customer-centric product and from the outset Trade Me clearly understood our retail, rather than finance, approach," Afterpay's managing director, Nick Molnar, said.
After focusing on the Australian market in 2015 and 2016, Afterpay said it believes it is the right time to launch into New Zealand.
Afterpay was founded in 2014 and now claims over 650,000 customers and over 4,300 retail merchants. The company listed on the Australian Securities Exchange last year.
Trade Me is nearly 20 years old. In 2015 it posted its billionth listing on the auction platform.