SAN FRANCISCO, July 23, 2020 /PRNewswire/ -- Afterpay (ASX:APT), the leader in "Buy Now, Pay Later" payments, today announced its new loyalty program, called Pulse. The only mass market program of its kind, Pulse incentivizes and rewards Afterpay customers who pay for their purchases on time and choose to spend responsibly. Unlike credit card schemes which reward consumers for increasing their spending, Afterpay rewards responsible spending.
Today, Millennials and Gen Z are making a conscious choice to use debit cards, yet their responsible decision of spending their own money is not rewarded. In 2020 alone, approximately 90% of Afterpay's global customers1 have used debit cards to make purchases. Similarly, in its most recent SEC filings, Visa reported a sharp decrease in U.S. credit card usage versus debit. US credit-card volumes declined by 21% in May year-over-year, while debit card volumes grew 12%. By offering Pulse, Afterpay is rewarding consumers for paying in a way they prefer, with their debit cards - while also discouraging the use of expensive loans with interest, fees and revolving and extended debt. Until today, there has been no way for debit card users to earn rewards or benefits for the way they pay.
Available in the U.S. starting today, Pulse will give consumers several benefits including:
- No payment up front on eligible purchases2
- Ability to shop with 50 top retailers like Sephora, Macy's and West Elm, and pay in four interest-free installments
- Increased payment flexibility for Pulse members
- Access to exclusive discounts, promotions, and new product launches
"Until today, loyalty programs across our industry have encouraged excessive spending - leaving no options for those shoppers who want to spend responsibly and avoid expensive fees and extended debt," said Nick Molnar, Co-Founder and U.S. CEO of Afterpay. "We built Pulse to fulfill a need and offer a program in which both consumers and retailers benefit. This approach is fundamental to our mission and values as a company to encourage financial wellness and power an economy where everyone wins."
Pulse gives retail partners an opportunity to reach the world's most valuable consumers - highly engaged, high frequency Millennial and Gen Z shoppers who prefer Afterpay and spend responsibly. Afterpay is a proven marketing channel for its retail partners. In April of 2020, Afterpay had more than 15 million app and site visits, and Afterpay's U.S. Shop Directory contributed nearly 10 million lead referrals to its retail partners.
Eligible U.S. customers will receive an email inviting them to join the Pulse program. Pulse will be available in Australia and New Zealand in the coming weeks and available in the UK in the coming months. More information can be found here.
About Afterpay Limited
Afterpay Limited (ASX: APT) has transformed the way people pay by giving merchants the ability to allow shoppers to receive products immediately and pay in four simple installments over a short period of time. The service is completely free for customers who pay on time - helping consumers spend money responsibly without incurring interest, fees or revolving and extended debt. As at June 30, 2020 Afterpay is offered by more than 55,400 of the world's best retailers and is used by more than 9.9 million active customers globally.
Afterpay is currently available in Australia, New Zealand, the United States and the United Kingdom where it is called Clearpay. Afterpay is on a mission to be the world's most loved way to pay.
1Afterpay FY20 Business Results
2Gift card, in-store and certain merchants excluded from this offer