Buy now, pay later (BNPL) firm Afterpay is launching a new monthly payment option that aims to give consumers greater payment flexibility and responsible spending options ahead of the holiday shopping season.

Shoppers who choose Afterpay’s monthly payment option can budget their purchases over a 6- or 12-month return period on purchases ranging from $400 to $4,000, according to a press release on Thursday. Wednesday, October 5.

For consumers, the new payment options include no late fees and no compounding, plus interest limits on debt, and transparency about the total amount owed at the time of purchase. Merchants that offer Afterpay benefit from the ability to offer more items across more categories and price tags with no additional transaction or integration fees.

Merchants can also benefit from newly expanded Postpay options by attracting new customers, increasing overall sales, and increasing average sales per customer, depending on the release. onion.

Afterpay’s new monthly payment solution will initially be introduced online, although the company plans to offer the service for in-person purchases in 2023.

“Our new offering is a natural extension of the Afterpay experience — giving customers a new way to take more control and have more choice in the way they pay,”

“We look forward to supporting customers with yet another smart budgeting tool.”

                                                                             Lee Hatton, head of Cash App Asia Pacific.

Afterpay’s monthly payment option is currently available in the US on Bellacor.com, EyeBuyDirect, FWRD, and Your Mechanic, among many other merchant partners. The company also plans to expand the offering to merchants outside of the US in 2023.

BNPL aims to provide consumers with an alternative to the high-interest rates and compounding debt of credit cards. More than 98% of Afterpay transactions are never subject to late fees, and more than 90% of Afterpay transactions are paid by debit card, according to the release.