Rite Aid joins ‘buy now, pay later’ trend
Rite Aid Corp. is offering online shoppers a new way to make installment payments on purchases.
The retail pharmacy chain is teaming up with “buy now, pay later” (BNPL) payment platform Afterpay to provide its online customers with a new way to pay for everyday items in four installments, with no additional cost when payments are made on time. This partnership will also provide Rite Aid customers with access to Afterpay’s digital budgeting tool.
Rite Aid will launch its new BNPL partnership by offering Afterpay installment payments for purchases made online at its e-commerce site. The company plans to roll out its flexible payment option in stores nationwide in the coming months.
Customers can apply Afterpay to any Rite Aid purchase made online, with the exception of prescription drugs or products that require a health provider prescription.
BNPL future looks bright
Rite Aid is entering the BNPL space as data is indicating it is popular with desirable younger consumers and growing rapidly. According to data from eMarketer, millennials account for 42.7% of BNPL payment volume, followed by Gen Z shoppers, who account for 30.3%.
In addition, data from Juniper Research indicates BNPL is poised for rapid near-term growth. The study shows that spending via BNPL services which are integrated within e-commerce checkout options, including fixed installment plans and flexible credit accounts, will reach $995 billion in 2026, up 274% from $266 billion in 2021.
Juniper Research analysis also indicates that BNPL growth will be fueled by a greater consumer appetite for credit to spread costs, particularly in the wake of the COVID-19 pandemic. As a result, by 2026, BNPL services are expected to account for over 24% of global e-commerce transactions for physical goods by value, up from 9% in 2021.
“As a trusted destination for the healthcare needs of our communities, we are committed to providing our customers with offerings that make it easier for them to obtain the products they need to support their whole health,” said Justin Mennen, chief digital and technology officer for Rite Aid. “Our new partnership with Afterpay is another way we are leveraging technology to improve the customer experience and the overall health and wellness of our communities.”
“Our relationship with Rite Aid, and expansion into drugstore e-commerce, comes at a time of increased shopper demand to pay over time. Approximately 39% of consumers have indicated using BNPL more due to the pandemic and inflation,” said Zahir Khoja, GM of global platforms and partnerships at Afterpay. “By expanding our platform and services to new everyday spend retailers, we can continue to help consumers unlock access to daily necessities while managing their budgets.”
Headquartered in Camp Hill, Penn., Rite Aid operates approximately 2,450 retail pharmacy locations across 17 states. Through Elixir, we provide pharmacy benefits and services to millions of members nationwide, as well as the www.riteaid.com e-commerce site.
Afterpay is currently available in the U.S., Australia, Canada, New Zealand, U.K., France, Italy and Spain.