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Buy Now - Pay Later
AfterPay's Payment Methods
More shoppers than ever before shop on their mobile devices, and making the checkout experience as easy as possible continues to be a top priority. Pay-after-delivery services facilitate just that and allow shoppers to separate the checkout from the execution of the actual payment.
AfterPay gives shoppers the freedom to pay whenever and however they find it most convenient. AfterPay consists of two fundamental payment alternatives: invoice and part payment. Each alternative offers various options, as illustrated below.
Shoppers who chose AfterPay’s invoice are subject to predefined payment terms to pay the invoice and shall pay the full purchase amount on the invoice due date. The due date is always calculated based on the dispatch date of the goods, not the purchase date.
14 Days Invoice
The most common terms of payment are within 14 days after the purchase, which gives shoppers enough time to experience the goods before paying. The full purchase amount is to be paid by the due date.
During peak seasons, such as Christmas, merchants may use campaign invoicing, which allows shoppers extended payment terms per purchase or a fixed due date.
AfterPay offers standard campaigns depending on the season. Merchants are able to set up specific campaigns through separate agreements. All campaigns can be retrieved by calling the AfterPay API.
For example, Christmas campaign A would be displayed at checkout as “Buy now, pay after Christmas” and payment is due by January 31, regardless of the actual purchase date as below:
In contrast, Christmas campaign B would be displayed at checkout as “Buy now, pay in 30 days” and payment is due within 30 days from dispatch, as shown below:
Providing convenience for shoppers who frequently make small purchases, AfterPay can consolidate all these purchases into a single invoice. The most common use case is a monthly invoice, which is typically suitable for transportation tickets or digital streaming services, but the frequency of the invoicing can be agreed separately. While the actual purchases are made on different dates, the payment terms of 14 days start from the date on which the consolidated invoice is issued. An example of a consolidated invoice is illustrated below
Part Payments / Installments
Through its part payment option, AfterPay allows shoppers to pay a particular purchase over time, enabling them to make higher order value purchases while limiting their monthly spending.
AfterPay offers fixed instalment plans with predefined maturities of 3, 6, 12, or 24months. The Payment API determines which of these instalment plans can be offered. The monthly amount to be paid in a fixed instalment plan is the same during the entire plan.
Flexible Installments (Account)
Merchants can provide shoppers with a more flexible payment option at checkout by allowing them to control the amount they are willing to pay per month, which means there is no set maturity. However, shoppers are obliged to pay a monthly minimum as defined by AfterPay. Shoppers can alter the amount they are willing to pay every month in AfterPay’s customer portal. Additional orders can be added at any time as long as the amount does not exceed the credit limit set by AfterPay.
To use the Flex payment options, shoppers must sign a credit agreement within 14 days after receiving the first invoice, and shoppers in Sweden or Norway must also sign KALP.
The account notice is sent on country-specific dates (e.g. the 18th of the month in Sweden) and has payment terms of 12 days like the fixed instalments.