Tyro, Afterpay tie-up to disrupt SME payments
The new deal will bring Afterpay instalment plans to small businesses.
A new partnership is set to extend the reach of delayed payment plans for Australian shoppers.
Digital payment solutions company Afterpay, which offers retailers a way to let customers defer upfront product costs, has aligned with payments provider Tyro to roll out its platform to thousands of businesses.
Tyro Payments, Australia's only independent EFTPOS provider, raised $100 million in 2015 and was dutifully granted a full banking licence by the Australian Prudential Regulation Authority (APRA).
Tyro has an installed base of more than 17,000 merchants and will enable Afterpay's "buy now, receive now, pay later" model on a large proportion of its point of sale (POS) platforms during the first half of 2017.
Signing up and selecting Afterpay as your payment option lets you be approved at the checkout. Direct product repayments from a debit or credit card of your choice are then scheduled in fortnightly instalments.
Afterpay currently has a growing base of 2,100 merchants, including Super Retail Group, Country Road Group, Best & Less, Seafolly, MJ. Bale, Hype DC and Toys "R" Us.
The AFR reports millennials are embracing the service, comprised of 375,000 customers, for its flexibility.
Earlier this year, finder.com.au listed 30 stores you probably didn’t realise that utilise Afterpay's services.
Interest-free finance isn't a new concept, but innovation in the space has been limited. Openpay launched last year, servicing a range of industries; from retail to medical, auto and home improvements.
This week the government offered a number of key recommendations following last year's small business loans inquiry, the majority of which were directed at Australia's heavily scrutinised banking industry.
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