What it is
Afterpay is a buy-now-pay-later service that splits a purchase into four interest-free payments every two weeks. You receive the full amount upfront and Afterpay manages the customer's schedule and risk.
- Pay in 4: four equal installments over six weeks, interest-free for the shopper.
- Pay monthly option available in some markets for longer plans.
- You are paid upfront; Afterpay takes on fraud and chargeback risk.
Where it is mainly used
Afterpay is widely used in the United States, Australia, New Zealand, Canada, and the United Kingdom, where it operates as Clearpay. It targets younger shoppers who prefer to spread costs without using a credit card.
- Strong in the US, AU, NZ, CA, and UK (as Clearpay).
- Popular with physical-goods retailers and fashion or lifestyle stores.
- App-driven discovery sends shoppers to participating merchants.
How customers pay at checkout
The shopper selects Afterpay at checkout, signs in or creates an account, and the first installment is taken immediately. The remaining three payments are automatic every two weeks.
- First payment at purchase, then three more every two weeks.
- Works online and in-store through the Afterpay app.
- On-site price-breakdown messaging can be shown on product pages.
Merchant access and local-entity notes
Afterpay offers a self-serve Business Hub for onboarding. Most physical-goods businesses can apply, but eligibility depends on business type, products, and market. Service-only or restricted-category sellers are usually not eligible.
- Apply through the Afterpay Business Hub.
- Physical goods that ship quickly are the typical fit.
- Approval can be instant or Manual review depending on the business.
PSP and aggregator route
Afterpay is built into many e-commerce platforms, so most merchants add it through Shopify, WooCommerce, Square, or BigCommerce rather than a custom build. This keeps setup close to zero code.
- Native plugins for Shopify, WooCommerce, Square, and BigCommerce.
- Developer API available for custom storefronts.
- Through platforms you avoid separate underwriting in each channel.
Pricing and settlement
Afterpay's merchant fee is commonly described as a percentage of the sale plus a small fixed fee per transaction, with the exact rate set by market and agreement. Published pricing is for initial screening only; confirm the provider's official pricing page or a written quote before you go live.
- No setup or monthly fee for standard merchants.
- Settlement to your account typically happens within a few business days.
- Confirm the live rate on Afterpay's pricing page or your written agreement.
Public contact route
Afterpay runs an official merchant help center and a developer documentation portal. No public sales email found; use the official website contact page or LocalPayMap consultation.
- Merchant help and setup: https://www.afterpay.com/en-NZ/help-merchant/4708281556505-Setup-your-Afterpay-Business-Account
- Retailer resources: https://www.afterpay.com/en-US/for-retailers/woocommerce
- Developer docs: https://developers.afterpay.com/
Technical and pricing fields to verify
Use this structured checklist before you ask for a quote or implementation access. Unknown fields are intentionally marked as “to be confirmed” instead of being treated as unavailable.
| Pricing model | merchant discount rate or quote |
|---|---|
| Pricing basis | official pricing page or public terms |
| Fee range | To be confirmed |
| FX markup | to be confirmed |
| Chargeback fee | To be confirmed |
| Payout fee | To be confirmed |
| Reserve policy | To be confirmed |
| API / checkout route | to be confirmed |
| SDK languages | to_be_confirmed |
| Sandbox | likely supported verify in docs |
| Webhooks | likely supported verify in docs |
| Idempotency | to be confirmed |
| PCI scope | to be confirmed |
| 3-D Secure | To be confirmed |
| Recurring billing | to be confirmed |
| Marketplace split | to be confirmed |
| Partial refund | to be confirmed |
| Preauth / capture | To be confirmed |
Official links to open
Public pricing signals are for initial screening only. Actual quotes can vary by country, industry, transaction volume, settlement currency, integration route, and contract terms.
Questions merchants ask
What is the difference between Afterpay and Clearpay?
Clearpay is the Afterpay brand in the United Kingdom. The product and merchant experience are the same; only the name changes by market.
Do I get paid upfront with Afterpay?
Yes. Afterpay pays you the full order value minus its fee, then collects the installments from the shopper.
Can service or digital businesses use Afterpay?
Afterpay mainly serves physical-goods sellers that ship within a short window. Many service-only or restricted categories are not eligible.
How long until I am approved?
Many applications are approved instantly; others go to manual review and can take a few business days depending on business type.
What does Afterpay charge merchants?
A percentage of the sale plus a fixed per-transaction fee, varying by market and volume. Published pricing is for initial screening only; confirm the provider's official pricing page or a written quote before you go live.
Does Afterpay work with Shopify?
Yes. Afterpay is available as a native Shopify payment option and also through the Afterpay app and on-site messaging tools.