PetSmart has joined the growing ranks of retailers allowing customers to buy now and pay later.
The pet supplies and services retailer is collaborating with the ‘buy now, pay later’ (BNPL) Afterpay platform to give customers the ability to have flexible payment options when shopping in-store and in line. PetSmart customers using Afterpay can make purchases and pay for them in four interest-free installments, due every two weeks. Customers will receive their products in advance like any other method of purchase, but have the option of paying over time. Afterpay is available for the purchase of all PetSmart products, as well as pet services like grooming, training, day camps and more.
As the largest omnichannel pet retailer, PetSmart is the first company of its kind to offer Afterpay’s BNPL service. Having recently added offers such as curbside pickup and same day delivery, the addition of Afterpay is part of PetSmart’s strategy to provide customers with greater purchasing and fulfillment flexibility.
Buy Now-Pay-Later continues to grow as a popular omnichannel payment option. Financial payments firm Square recently acquired Afterpay in a $ 29 billion mega-deal. Square made this significant purchase as Afterpay added a number of large retailers to its platform.
Dretailers like Amazon, CVS, Dell, Kroger, Macy’s, Nike, Nordstrom, Nordstrom Rack, Sephora, Target, Victoria’s Secret, Walgreens and Yeti now all offer the flexible Afterpay payment option through the Afterpay mobile app to pay in four interest-free installments. App users selected by Afterpay to participate will be able to immediately return items to their homes. Retailers, including The container store, Gap inc., and Urban Outfitters have all rolled out flexible Afterpay payments in recent years.
Afterpay uses a single-use card to facilitate the purchase. Payment details are automatically filled in at checkout, helping to ensure a seamless checkout experience. According to Afterpay, these retailers account for almost half of all e-commerce volume in the United States. Eligible customers can choose these retailers from the Afterpay store directory and then pay with Afterpay.
More generally, 45.1 million U.S. consumers aged 14 and over will use a BNPL platform this year, up 81.2% from last year, according to eMarketer. This represents more than a fifth (21.5%) of digital shoppers in the United States. By 2025, this figure will rise to more than a third. Young consumers are encouraging adoption of flexible payments, eMarketer said. Millennials represent 42.7% of BNPL, followed by Gen Zers, who represent 30.3%.
“Afterpay gives our customers the financial freedom and flexibility to make purchases from PetSmart quickly and easily – and on their terms,” said Will Smith, senior vice president and chief marketing officer of PetSmart. “We are delighted to bring this innovative program to our customers, whether they are shopping in-store or online. “
“By joining forces with PetSmart, we are meeting the growing demand for pet owners by the younger generations during a time that continues to be uncertain,” said Zahir Khoja, Managing Director of Afterpay North America. “Starting today, PetSmart customers can budget for the costs of pet care while avoiding revolving debt and expensive, interest-bearing credit products. “
PetSmart operates approximately 1,650 pet stores in the United States, Canada and Puerto Rico, as well as more than 200 PetSmart PetsHotel residential schools for dogs and cats in-store. Founded in Australia in 2015, Afterpay is offered by nearly 100,000 global retailers, with nearly 20 million customers in North America.