Younger U.S. Consumers Are Supporting Small Medium Businesses Through Afterpay
May 14 2024 - 9:00AM
Business Wire
Afterpay’s SMB merchant network has grown by
55% in 2023, helping more businesses connect with younger
consumers.1
Amidst challenging economic times, younger consumers made up the
largest segment of those shopping small and medium sized businesses
(SMBs) through Afterpay over the past year. While all generations
showed a strong intent to support more SMBs in Q1 2024, Gen Z spend
increased the most, up +11% year-over-year.2
Afterpay helps growing merchants stay ahead of the competition
by meeting next-gen customer demands for an improved omnichannel
checkout experience while enabling responsible spending. This is
especially important for younger, conscious Americans, who want to
engage with merchants that align with their values of transparency
and flexibility, where Afterpay was recognized as one of the most
trusted offerings among those who tried it.
While apparel and accessories remain top of mind, younger
consumers are looking towards SMBs for broader categories including
health and beauty, home and garden, arts and entertainment,
hardware, and electronics, which are traditionally thought of as
big box purchases. Next-gen consumers are also choosing Afterpay to
alleviate financial stress related to life moments including
preparing for a baby or buying a home. Some of the fastest growing
items purchased from SMB were outdoor furniture accessories +236%
year-over-year, baby and toddler furniture +111% year-over-year,
and jewelry +18% year-over year.²
As an omnichannel solution, Afterpay has delivered meaningful
value to SMBs, giving them a better chance to compete with bigger
businesses while receiving all payments made through Afterpay
upfront. SMBs that partner with Afterpay have unlocked growth
through increased average order value, reduced return rates, and
increased brand relevance with next gen shoppers. In Q1 2024, a
consumer discovered a new merchant through Afterpay every 5
seconds.3
“While SMBs have been squeezed at every turn by macro pressures,
they’ve been able to leverage solutions like Afterpay to meet the
demands of younger consumers who want more flexibility in how they
shop and pay. As a result, Afterpay has become an important asset
for SMBs and we take pride in being part of the journey as these
businesses grow and become even more profitable,” says Heawon
Kim, Head of SMB and Mid Market Partnerships, Afterpay and Cash
App.
The Afterpay community is currently made up of more than 180,000
small and medium businesses across the US, with Afterpay’s SMB
merchant network growing by more than 55% in 2023.¹ Afterpay has
helped generate an incremental $8.6 billion in retail sales, which
allows merchants, especially SMBs, to support jobs and economic
activity directly within their businesses as well as reducing costs
of attracting and serving customers.4
About Afterpay
Afterpay is transforming the way we pay by allowing customers to
buy products immediately and pay over time - enabling simple,
transparent and responsible spending. We are on a mission to power
an economy in which everyone wins. Afterpay is offered by thousands
of the world’s favorite retailers and used by millions of active
global customers. Afterpay is currently available in Australia,
Canada, New Zealand, the United States and the United Kingdom,
where it is known as Clearpay. Afterpay is a wholly owned
subsidiary of Block, Inc. (NYSE: SQ).
1Afterpay data analyzing CY 2023 2Afterpay data comparing Q1
2024 to Q1 2023 3Afterpay data analyzing Q1 2024 4Oxford Economics,
Economic Impact of Afterpay in the US, 2023
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