Target teams with Affirm, Sezle for BNPL
Affirm stock prices jumped 20% following news mega-retailer Target is integrating buy now, pay later (BNPL) at checkout for purchases over $ 100, CNBC reported . Target also announced that it is teaming up with Sezzle on BNPL to prepare for the holiday shopping season.
“We know our customers want easy, affordable payment options that stay within their family’s budget,” said Gemma Kubat, President of Financial and Retail Services for Target in One Business. blog post. “Through our partnerships with Affirm and Sezzle, Target is investing in new financial tools that make our shopping experiences more flexible and personalized to customer needs, just in time for the holiday season.”
See also: Retailers Embrace Holiday Advance Shopping to Tackle Tangled Supply Chains
BNPL options are short term installment loans available at checkout with no fees or interest that give buyers an easier way to pay without taking on credit card debt. The conversion rate for BNPL transactions is estimated to be between 20% and 30%, with the average total price of the till being around 30-50% higher than it would have been without, CNBC reported.
In August, Affirm partnered with Apple to offer financing for iPhones, iPads and Macs. The BNPL startup then announced that it was working with Amazon to offer its services for purchases of $ 50 or more. Affirm shares rose 47% on news that Amazon had become its top third-party provider of installment loans, according to CNBC.
Read more: Amazon enters BNPL space with Affirm Partnership
Target customers can apply with Affirm to get started, then choose to pay with Affirm and decide on the monthly repayment, the blog post says.
“You will never pay more than what you agreed to at checkout because Affirm does not charge any late or hidden fees,” Target said in the post.