Afterpay positions as savvy alternative to credit cards

Afterpay, the buy-now-pay-later giant, has launched a major brand campaign which aims to position its services as the savvy smart alternative to using credit cards.

Afterpay has launched a campaign to showcase its services as a smart financial alternative to credit cards.

Afterpay is squaring up to compete directly with the banks by positioning its services as a smart financial alternative to using credit cards in a major advertising campaign.

The Buy Now Pay Later giant, which boasts 4.1 million users across Australia and New Zealand, has launched the brand campaign and new “Own It” tagline following a strong performance in the third quarter of 2024.

Afterpay reported a 23 per cent year-on-year increase in GMV to $8.62bn and a 29 per cent lift in gross profit of $242m.

The growth is attributed to single-use and pay-in-four payments by Afterpay’s expanding customer base of 18 to 54-year-old, almost all of which (96 per cent) make their payments on time.

This broad customer base is the focus of this campaign, which aims to dispel the misconceptions that Afterpay users are young and financially irresponsible.

Afterpay vice-president of marketing for international markets Joel Moran said: “Our customers are smart, financially savvy and ‘in the know’, you can ask them why they use Afterpay, and they’ll reel off the reasons why they’ve stopped using credit cards and use Afterpay. They are smart and financially savvy, they’re not necessarily wealthy per se, but they’re making smart decisions.

“They’re playing the system, rather than being played by the system when they use Afterpay.”

The campaign, which was created by advertising agency 72 and Sunny, is a departure from the brand’s previous work and aims to project a more mature, sophisticated look and feel for the brand.

“We still want to be seen as a cool brand, and one that’s ahead of the trends,” Mr Moran said.

“We are a challenger to the banks and the traditional credit model and the credit cards. But also we want to elevate that message and deliver it in a slick and more premium way to reflect our customers.

“The protagonist in this ad is confidently playing the system when she’s choosing to use Afterpay in the store and that really is the antithesis of who the Afterpay customer is.”

Mr Moran said the campaign would run across out-of-home, audio and digital channels, including BVOD, YouTube, TikTok, Meta and Snapchat, and remain in-market for six months to ensure the long-term brand message connected with both existing and prospective customers.

“This isn’t a direct response campaign, this is about influencing people and getting them to think differently, use us more, or maybe use us for the first time,” he said.

“It’s about reaching the mums and dads or grandparents and all prospective customers.

“We know from our Mandala consumer research that users are saving $127m compared to ... with credit cards and the many little charges and tricks.”

Afterpay plans to keep the campaign in-market around its other key brand marketing moments such as its Afterpay Day Sales events, as it helps to reinforce the message and drive brand growth, said Mr Moran.