By Aisling Finn on Friday 30 October 2020
Millennials were a driving force behind the buy-now-pay-later fintech’s growth according to Clearpay.
Buy-now-pay-later giant Clearpay (also known as Afterpay) experienced record levels of growth over the summer months.
In the first quarter of its 2021 financial year, Clearpay saw sales across all regions jump up by 115 per cent to A$4.1bn (£2.3bn), a huge leap up from the A$1.9bn (£1.03bn) recorded in the same period last year.
Clearpay’s sales in the UK leapt by 346 per cent to A$300m (£163m), up from just A$100m (£54m) in the first quarter of the 2020 financial year.
The buy-now-pay-later fintech says that millennials accounted for 45 per cent of its like-for-like sales growth in the first quarter of the 2021 financial year, with Gen X and Gen Z being responsible for 25 and 24 per cent, respectively.
Here in the UK, the figure is even higher. Millennials accounted for 51 per cent of Clearpay’s customers, the highest proportion of any region.
Similarly, the fintech’s number of active customers globally nearly doubled, leaping by 98 per cent to 11.2m up from 5.7m over the same period in 2019.
Clearpay saw the number of active customers using its financing option increase by 282 per cent here in the UK, outperforming both the US and Australia and New Zealand.
As well as a leap in customers, Clearpay saw more merchants join its platform.
The number of active merchants on the fintech's books increased by 70 per cent to nearly 64,000, up from just 37,500 last year.
Several high-profile brands recently signed on to use Clearpay’s financing options in the UK including perfumer Jo Malone, makeup brand Smashbox, skincare brands Clarins, La Mer and Clinique and high street brands like Karen Millen, Coast and Pandora.
As more and more consumers turned to online shopping amid the coronavirus pandemic, Clearpay says smaller businesses are reaping the benefits.
In Australia and New Zealand, sales from SMEs were 79 per cent higher than it was in the same period last year as people continue to support local businesses.
The fintech experienced rapid growth across the pond too, with underlying sales increasing by 229 per cent in the US compared to the same period in 2019.
Not only did Clearpay experience record sales in the US, but it also added 12,500 customers per day during the quarter, with total active customers in America reaching 6.5m by the end of September.
Clearpay saw even higher numbers of customers signing on to use its platform throughout this month, adding over 15,000 users per day in October.