Afterpay loyalty plan ‘rewards responsibility’

Afterpay is expected to unveil a new loyalty program at the company’s annual meeting on Tuesday.

Afterpay is expected to unveil a new loyalty program at the company’s annual meeting on Tuesday. Picture: AAP

Buy now, pay later market darling Afterpay is expected to unveil a new loyalty program at the company’s annual meeting on Tuesday, as the company prepares for a bumper Christmas period.

Chief executive and co-founder Anthony Eisen said the new initiative, dubbed Pulse, would be the only mass-market program of its kind.

Pulse will reward Afterpay customers who pay for their purchases on time and spend responsibly.

The company said that unlike credit card schemes or other BNPL offerings that rewarded consumers for increasing their spending, Afterpay rewarded responsible spending.

“Until today, loyalty programs across our industry have encouraged excessive spending — leaving no options for those shoppers who want to spend responsibly and avoid expensive fees and extended debt,” Mr Eisen said.

“We built Pulse to fulfil a need and offer a program in which both consumers and retailers benefit. This approach is fundamental to our mission and values as a company to do the right thing by our customers by encouraging financial wellness and powering an economy where everyone wins.”  A company spokeswoman added that previously there had been no way for debit card users to earn rewards or benefits for the way they pay.

Customers will not have to make an initial payment upfront online, and for the first time, instore. Instead, when customers make a purchase, their first instalment will be paid two weeks from the purchase, both online and instore.

In addition, a customer will be able to change up to six payment dates per calendar year on existing orders.

At the AGM the company is also expected to release new statistics, obtained by The Australian, showing that spending by Gen Z and millennials has recovered faster than older generations since the start of COVID.

Afterpay’s research found spending by millennials in Australia is now 2 per cent above pre-COVID levels. Spending by older generations is still well under pre-COVID levels.

BNPL is trending up across all generations in Australia, rising by 60 per cent for the year, while credit spend has decreased by 10 per cent. Gen X spend is up 47 per cent since January and millennial spend has grown by 48 per cent.