According to the press release, unlike credit card schemes, which reward consumers for increasing their spending, Afterpay rewards responsible spending.
The initiative comes to support Millennials and Gen Z, who are making a conscious choice to use debit cards, yet their decision of spending their own money is not rewarded. In 2020 alone, approximately 90% of Afterpay's global customers have used debit cards to make purchases. Similarly, in its most recent SEC filings, Visa reported a sharp decrease in US credit card usage versus debit. US credit card volumes declined by 21% in May year-over-year, while debit card volumes grew 12%.
Consequently, by offering Pulse, Afterpay is rewarding consumers for paying in a way they prefer, with their debit cards, while also discouraging the use of expensive loans with interest, fees, and revolving and extended debt.
The new offering is available in the US and includes several benefits, such as:
no payment up front on eligible purchases;
ability to shop with 50 top retailers such as Sephora, Macy's and West Elm, and pay in four interest-free instalments;
increased payment flexibility for Pulse members;
access to exclusive discounts, promotions, and new product launches.
Furthermore, Pulse offers retail partners an opportunity to reach the world's highly engaged, high frequency consumers – Millennial and Gen Z shoppers who prefer Afterpay and spend responsibly.
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