Buy now, pay later (BNPL) services are now available to US customers thanks to a new cooperation agreement between PPRO, the industry leader in local payments systems, and Afterpay.

Its Afterpay alliance comes after it was awarded a twin tranche investment of €85 million (US$92.8 million) to pursue expansion in important regions.

Thanks to the partnership with Afterpay, e-commerce businesses in the US, Europe, China, and Hong Kong may now provide direct sales to US customers by utilizing Afterpay.

BNPL: Revolutionizing the American Buying Experience

PPRO is taking advantage of a payment method that is growing in popularity in the US by collaborating with BNPL provider Afterpay.

According to Adobe data, BNPL usage on Cyber Monday 2023 surged to a record high, up 42.5% from the year before.

The US has also seen an increase in BNPL consumer spending, with US$46 billion being spent in BNPL transactions between January and August 2023—a 14.7% increase over the same period last year.

PPRO can now meet the rising demand from customers for more flexibility in their payment methods and schedules by collaborating with Afterpay.

By enabling BNPL, merchants benefit from higher average order values as customers feel more comfortable making greater purchases because they can spread the expense over a longer time frame.

PPRO's Chief Commercial Officer, Eelco Dettingmeijer, offers the following insight on his company's most recent collaboration: "Offering BNPL at checkout is a no-brainer for merchants looking to sell to US consumers, as its popularity in the US is expected to grow."

"With Afterpay's platform now available to merchants in the US, Europe, China, and Hong Kong, businesses can offer flexible payment options to attract more customers and increase sales."

The state of BNPL globally

In fact, BNPL has emerged as a popular payment method for customers outside of the US. BNPL is now a fintech mainstay, sustained by a cost-of-living crisis that lasted from 2022 to 2023 and whose repercussions are still felt today.

According to a new cross-country BNPL research by the Bank of International Settlements (BIS), it is becoming more and more popular not only in the US but also in the major global markets.

With between 50,000 and 100,000 BNPL downloads per 100,000 individuals, Australia and Sweden really seem to be the countries where BNPL is most popular.

In a very competitive Australian market where BNPL is immensely well-liked by customers, Klarna and Afterpay hold the top spots.

Of course, BNPL pioneer Klarna originated in Sweden and has since expanded its tentacles over the world through a series of astute business alliances. Currently, the financial company started by Sebastian Siemiatkowski boasts over 150 million active users and connections with over 500,000 retailers worldwide.

In the US, where it competes with Afterpay for BNPL transactions and has over 7 million active users, companies like Klarna have extended beyond Europe.

Every sector of US industry is affected by BNPL, and its use is only expected to increase. In an attempt to compete with Affirm in the retail BNPL market, Walmart most recently revealed that its majority-owned BNPL company, One, will be made accessible for high-end products across all of its shops.

With the rate at which customers are adopting this new payment method, PPRO's cooperation with Afterpay elevates BNPL offers in the US to a global scale.