Afterpay deepens Rite Aid partnership
- BNPL service Afterpay is now available at Rite Aid stores nationwide.
- The service first teamed up with the drug store last year.
- The use of BNPL services has exploded, including in essential categories.
Buy now, pay later (BNPL) service Afterpay has deepened its relationship with Rite Aid.
According to an April 5 release, Afterpay expanded its partnership with the drug store chain and will now offer its BNPL service to customers at more than 2,000 Rite Aid locations across the U.S. Rite Aid first partnered with Afterpay last year.
“Expanding our partnership with Afterpay allows more customers to obtain offerings that support their whole health needs while providing financial flexibility,” said Justin Mennen executive vice president and chief digital and technology officer at Rite Aid, in the release. “We’re consistently leveraging technology to complement the busy lives of our customers and improve the health and wellness needs of our communities.”
Afterpay splits up the payment into four interest-free payments: one paid at the time of checkout and three other payments at later dates over the course of six weeks. If consumers pay off their purchases on time in four payments, they aren’t charged any fees or interest, according to Afterpay.
As Retail Leader Pro recently reported, the usage of Afterpay and other similar BNPL services has surged, especially in essential categories such as grocery. In a 2021 survey, more than 61% of respondents aged 18 to 24 said they used a BNPL service, up from 38% in a 2020 survey. Consumers aged 55 and up saw BNPL growth of nearly 100%, according to The Motley Fool.
In addition to its expanded Rite Aid partnership, Afterpay also in the April 5 release said it had partnered with new retailers, including Boden, Fresh, Lulu and Georgia, Quince, Swarovski and Wolverine Worldwide.