Buy now, pay later (BNPL) company Afterpay has teamed up with HBX, Hypebeast’s eCommerce platform, to help shoppers afford luxury and streetwear clothing brand purchases.
According to a Wednesday (June 8) news release, the partnership will let shoppers pay for online purchases in four installments.
“As two leading brands at the intersection of culture and youth, the partnership will allow more Gen Z and Millennials to shop the world of contemporary fashion and lifestyle while paying over time,” the release said.
According to Afterpay, younger consumers have shown an affinity for BNPL over the last two years, with spending up 925% since the beginning of the pandemic.
“HBX’s Gen Z and Millennial consumers can now benefit by using Afterpay to responsibly spend on the latest curated trends from fashion to art to design and culture,” the companies said in the release. “This partnership will be a joint effort by both brands to break down entry barriers for customers to attain curated collections and exclusive drops by paying over time.”
HBX offers Afterpay on purchases made online, but also plans to bring this payment option to its New York City store for access to new brand launches. With this partnership, the company joins more than 144,000 other retailers and brands using Afterpay, per the release.
The partnership comes at a time when the BNPL sector could be facing a significant shakeup, as PYMNTS recently reported.
As we noted Wednesday, the business model is seeing more scrutiny as BNPL ticket prices extend beyond $1,000 at a time of economic uncertainty and record inflation.
Regulators have begun taking a closer look at the entire BNPL industry, and a House Subcommittee on Financial Services hearing called “Buy Now, Pay More Later?” was held in November to examine rising consumer debt.
And Nandan Sheth, CEO of Splitit, told PYMNTS’ Karen Webster this week that he anticipates that consumers will see changes in payment terms as BNPL lenders are faced with a tightening of underwriting standards that could hinder their capacity to extend loans.