- Australian buy now, pay later platform Afterpay has entered a deal that will see it be used on eBay Australia.
- Through the deal, eBay Australia’s 40,000 small and medium businesses can have their customers use Afterpay.
- Afterpay is set to go live on eBay Australia in 2020.
The rivalry between buy now, pay later (BNPL) platforms continues.
Nearly a week after Australian BNPL platform Zip Co announced a partnership with Amazon Australia, fellow Aussie platform Afterpay has entered a similar deal with eBay Australia.
The agreement will see eBay Australia give its 40,000 Australian small and medium businesses the ability to let their eBay customers use Afterpay. This move is set to go live in 2020 and “represents Afterpay Australia’s largest online arrangement to date.”
“[The partnership] allows both companies to align on a mutual approach of adding value to merchants by helping them access new and repeat customers,” Afterpay said in a statement.
Afterpay’s deal comes right on the heels of Zip Co’s deal with Amazon Australia.
At the time, Zip CEO Larry Diamond said in a release issued to Business Insider Australia, “The agreement with Amazon Australia demonstrates that Zip is no longer an alternative, but a mainstream payment option. We welcome Amazon Australia with wide arms to a list of more than 16,200 retailers who are allowing Aussies to own the way they pay.”
Afterpay has also entered an agreement with Mastercard in Australia and New Zealand to “deliver services to merchants with greater efficiency and flexibility”.
While the details are a little vague, Afterpay said more information on the partnership will come “as products and services are introduced to the Australian market”.
In Australia and New Zealand, Afterpay’s in-store service is available in almost 29,000 shops including Dymocks, David Jones and Myer. Plus, it partnered up with Bupa Dental to make Afterpay available to its patients. Afterpay has also gone live in UK and the US.
Earlier this year, the Reserve Bank of Australia announced plans to review BNPL platforms which have rules that prevent retailers from charging customers a surcharge for using them. A rule change could affect the BNPL sector, with users potentially becoming unwilling to foot the bill.
Nonetheless, Afterpay said in its recent release, “We welcome the opportunity to engage with the RBA in relation to surcharging, as part of its broad based, periodic review of the payments industry next year.”
The Australian Competition and Consumer Commission is also thinking of launching an inquiry into Australia’s banking sector, including BNPL platforms like Afterpay.
Business Insider Emails & Alerts
Site highlights each day to your inbox.