The department store chain has already started offering Afterpay, which allows consumers to pay over time, online and in physical stores. More than 100,000 global retailers have partnered with the payment services company. Nordstrom, Calvin Klein and Tommy Hilfiger will all join Afterpay’s network.
Spending with Afterpay is up 230% since 2020, according to the company. Merchants that partner with Afterpay can also receive referrals through the company’s app, which generates more than 1 million shoppers per day to online and physical stores.
"We are constantly evolving to enhance the customer experience both in-store and online at Nordstrom and Nordstrom Rack. This includes offering flexible payment options to meet customer needs," Dennis Bauer, president of payments and credit at Nordstrom, said in a statement. "We have heard from our customers that buy now, pay later programs resonate with them and are excited to partner with Afterpay to make these options available to them."
Afterpay has capitalized on a changing consumer trend among consumers, particularly Gen Z and Millennials, who increasingly prefer debit over credit card use. Nordstrom’s move comes as inflation hit new levels in 2021 not seen in nearly 40 years, meaning more consumers may be seeking flexible payment options.