Dick’s Sporting Goods launches omnichannel ‘buy now pay later’ payment
Dick’s Sporting Goods is joining an increasingly crowded playing field of retailers enabling customers to divide their payments into four interest-free installments.
The nation’s largest sporting goods retailer is partnering with buy now, pay later (BNPL) platform Afterpay to give customers the opportunity to have flexible payment options when shopping, both in-store and online. Dick’s Sporting Goods customers using Afterpay can make purchases and pay for them in four interest-free installments, due every two weeks.
Shoppers will receive their products upfront just like any other purchase method, but have the option to pay over time without taking out a traditional loan or paying any upfront interest. The service is completely free for consumers who pay on time.
Afterpay uses a one-time card to facilitate online purchases. The payment details are automatically populated at checkout, helping to ensure a seamless checkout experience. Eligible customers can choose these retailers in the Afterpay Shop Directory and then pay with Afterpay. In-store purchases are made with a digital card that a customer can add to their mobile wallet.
BNPL continues to grow as a popular omnichannel payment option. Financial payments company Square recently acquired Afterpay in a $29 billion megadeal. Square made that significant purchase as Afterpay has been adding a number of major retailers to its platform.
Retailers including Belk, PetSmart, Amazon, CVS, Dell, Kroger, Macy's, Nike, Nordstrom, Nordstrom Rack, Sephora, Target, Victoria's Secret, Walgreens, and Yeti now all offer the Afterpay flexible payment option via the Afterpay mobile app to pay in four interest-free installments. Retailers including The Container Store, Gap Inc., and Urban Outfitters have also rolled out Afterpay flexible payments in the past few years.
More broadly, 45.1 million U.S consumers ages 14 and older will use a BNPL platform this year, up 81.2% over last year, according to eMarketer. This represents more than one-fifth (21.5%) of digital buyers in the United States. By 2025, the figure will grow to more than one-third. Younger consumers are driving adoption of flexible payments, eMarketer said. Millennials account for 42.7% of BNPL, followed by Gen Zers, which account for 30.3%.
"When the pandemic prompted a surge in recreational activities, the time was right to bring on Dick's high-quality sport products to Afterpay shoppers. Consumers can get the equipment they need for their new year fitness goals, while spreading payments out in four easy installments," said Zahir Khoja, GM of North America at Afterpay. "Afterpay is excited to partner with Dick’s and enable their portfolio of world-class sports brands to reach a group of engaged young shoppers who want to spend responsibly."
As of Oct. 30, 2021, Dick’s Sporting Goods operated 734 Dick’s Sporting Goods locations across the U.S. The company also owns and operates Golf Galaxy, Field & Stream and Public Lands specialty stores, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping and video streaming.
As of June 30, 2021, Afterpay is offered by nearly 100,000 retailers across Australia, Canada, New Zealand, the U.S., the U.K., France, Italy, and Spain.