How Does Afterpay Make Money

Afterpay primarily makes money through the following ways:

1. Merchant Fees: Afterpay charges merchants a fee for each transaction processed through its platform. This fee is usually a percentage of the total purchase amount and varies depending on factors like the merchant’s sales volume and industry.

2. Late Fees: If a customer misses a payment, Afterpay charges them a late fee. These fees can add up quickly and contribute significantly to Afterpay’s revenue, especially considering the large number of transactions processed through its platform.

While Afterpay doesn’t charge interest on its installment plans, it does have other sources of revenue, such as:

3. Monthly Fees: Afterpay offers a subscription service called Afterpay Plus, which provides additional benefits to users for a monthly fee.

4. Other Revenue Streams: Afterpay might explore additional revenue streams in the future, such as partnerships, data analytics, or advertising.

It’s important to note that Afterpay’s business model relies heavily on customer adoption and responsible spending. While the service is interest-free for users who make payments on time, late fees can be substantial. If you’re considering using Afterpay or any other Buy Now, Pay Later service, make sure you understand the terms and conditions and can comfortably afford the payments.

What if I miss or cannot pay an Afterpay payment?

If you do not make a payment when due or funds are unavailable, you will be charged a late payment fee if the payment is not made within 10 days. For more information, visit the Afterpay Payment Purchase Agreement.

You can log in to your Afterpay account anytime to view your payment schedule or update your payment details.

For help with late payments, please contact Afterpay’s Customer Service team at 1.855.289.6014.

What is Afterpay and how do I use it?

Afterpay lets customers pay for purchases in four equal installments every two weeks. Afterpay is always zero interest but you are subject to extra charges for missed payments. All shopping bag items must be eligible for Afterpay. Your order total must be $35-$1000.

To use Afterpay: 

1. During checkout at Levi.com, select Afterpay as your payment method.

2. At the Afterpay website, enter your payment details (Visa or Mastercard). If you’ve used Afterpay before, just log into your account.

   • (Effective March 7, 2022 – New customers who apply for Afterpay will be submitted through a soft credit check. Existing Afterpay customers who place a new order after 3/7/22 will not be submitted through a soft credit check).

Any items purchased through Afterpay may be returned in-store. All purchases made with Afterpay will be reimbursed directly by Afterpay to the original payment method. Refunds can take up to 5-10 days to reflect back onto your account in the form of its original payment method. This includes in-store purchases and online purchases.

Afterpay cannot be used to purchase gift cards or e-gift cards. Any gift cards must be purchased separately. Afterpay may not be available on other items.