Afterpay and how it’s changing the payment game

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Afterpay was invented to make economic stress a little easier, offering a layby-like system where a total payment from a retailer is split into four equal fortnightly payments with no interest. Seems too good to be true? Hardly.

The notion of lay-by is an age-old concept and Afterpay have capitalised on through both digital and brick-and-mortar retailers. It allows customers the option to stagger out the payment of an item they really want but just wouldn’t be able to afford upfront.

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Infographic of how Afterpay works. Source: The Wealth Guy

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Not surprisingly, 65% of users say that the small payment options influence them to purchase items they usually would not and almost 50% of users say they spent more using Afterpay than they would with their own debit card (Mozo, 2018).

From a marketing perspective, by offering Afterpay as a payment option can influence customers to purchase higher priced options as well as a higher quantity. Additionally, if a purchase is under $500 from an online retailer the first payment is due in two weeks – not dependent on how soon you receive the item as well. Meaning customers can wear the item for two weeks before having to pay anything, and similarly try it on and send it back without having paid a single dollar.

But how has this piece of mind impacted customers loyalty to the service? The Financial Review outlines that:

• 15% of all Australians aged 18-36 are its customers
• More than 90% are returning to the service monthly
• 86% of users say the option of Afterpay impacts if they purchase or not
• Afterpay holds more than 25% market share of all online fashion retail sales

These statistics demonstrate that Afterpay have a strong relationship with their customers, and in turn customers have with their retailers. By providing it as a payment option, customers are more likely to browse online retailers and make purchases.

Of course there’s the reality of late fees and the inability to pay for items, but 78% of all Afterpay users have never paid a late fee (The Financial Review, 2018). Retailers still get their revenue as Afterpay pay them the full amount of an item as well. There’s potential for the service to not work, but on a whole and currently, it’s doing very, very well.

Have any of you used Afterpay before? Does the option mean you browse more on online retailers sites? Let me know below!

Google & the Self-Destructive Email

Privacy and Google are two words that have been under constant criticism in recent times. One term can usually not be discussed without the other coming into play.

With this, Google have attempted to redefine their image by creating a feature that takes “privacy” to a new level – for businesses’ and general users alike.

Welcome the self-destructing email.

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Source: Prototypr.io

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This new feature occupies Google’s mail-service, Gmail. It gives users the ability to protect emails that contain sensitive information by setting an expiration date, adding an access passcode, and also providing a sense of mind that the content can’t be redistributed to others without direct access.

The expiration date begins from the moment the email is sent, and can vary from 1 day to 5 years. Don’t worry though, even if a sender changes their mind about the email and who has access to it, the user can remove them with ease.

But why?

According to News.com.au, the self-destructing email allows senders to mail private and confidential information regarding clients or personal details to their recipients without the risk of having it shared via the email system.

However, if the information shared is really that confidential, is it worth sending over the internet? Breaches can still occur, as we all know, and screenshots unfortunately aren’t protected making the potential for sharing still possible.

From a marketing perspective though, maybe the expiring self-destructive email can be used for promotional periods or time-sensitive offers from organisations. In this way, the feature could be beneficial to both the marketer and the recipient.

In an opposing manner though, businesses may need to think twice about the level of trust they put into a virtual privacy option. I think the addition of the lock-system creates a false sense of added security that could very well one day be accessed.

What are your thoughts on Google’s current marketing of the self-destructing email? Do you think further clarification on it’s feature and needs are needed? Would you use it?

Let me know!