Shopping rewards provider Rakuten has struck a deal with buy now pay later operator Afterpay to offer retailers the ability to combine cash back and BNPL purchasing as a shopper incentive.
Rakuten announced that consumers shopping with participating merchants such as Ulta Beauty, Urban Outfitters, Anthropologie, Free People, Ugg, Ray-Ban and more, will earn cash back while opting to pay over time in four, interest-free installments. In turn, the combined offering can help merchants boost conversion rates and average order values, Rakuten noted. The company added that cash back and BNPL have helped brands attract high-value shoppers and increase sales.
“Working with Rakuten, we are able to help consumers spend responsibly during the busiest shopping season of the year, while also providing merchants with a two-in-one solution to deliver new customers and drive higher conversion rates,” said Melissa Davis, Afterpay chief revenue officer in announcing the partnership. “Heading into this holiday season, we couldn’t be more excited to join forces with Rakuten for the benefit of shoppers and merchant partners alike.”
Kristen Gall, president at Rakuten Rewards, asserted, “Offering unique deals and incentives is a key strategy for driving conversions of more expensive, luxury products. In fact, luxury items saw an 86% sales lift over non-luxury items in a recent cash back promotion, showing cash back is universally valued, and not just by habitual coupon cutters. We’re thrilled to partner with Afterpay to offer our retail and brand partners the opportunity to deliver the convenience of buy now, pay later that will help give their customers the ability to receive cash back on purchases immediately while paying over time, interest-free.”
