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  • April 2019
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Afterpay U.S.: The Omnichannel Dilemma

By: Antonio Moreno, Donald Ngwe and George Gonzalez
  • Format:Print
  • | Language:English
  • | Pages:24
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Abstract

In 2018, Nick Molnar, the founder of the Australia-based online payment service Afterpay began its expansion to the U.S. market. The service had gained a loyal following in Australia by enabling customers to pay for online purchases through four interest-free installments. Customer advocacy and the brand’s ability to improve customer acquisition for its retail partners had contributed to strong network effects, leading to rapid growth. In the United States, however, competitors were abundant, the regulatory environment was unfamiliar, brand awareness was lacking and retailers were seeking to partner with service providers capable of supporting an omnichannel experience. This new set of challenges required Afterpay to reevaluate its strategy: should the company fast-track the rollout of its offline offering in the United States or was it prudent to wait to acquire a larger customer base to justify the capital expenditure and operational changes this would require?

Keywords

Omnichannel Retail; Multi-sided Platforms; Value Creation; Business Model Innovation; Fintech; Digital Marketing; Disruptive Innovation; Business Startups; Business Growth and Maturation; Business Model; Business Organization; For-Profit Firms; Change Management; Customer Value and Value Chain; Customer Relationship Management; Customer Satisfaction; Financing and Loans; Microfinance; Global Strategy; Marketing Channels; Brands and Branding; Marketing Strategy; Market Entry and Exit; Digital Platforms; Product Development; Supply Chain Management; Business and Stakeholder Relations; Networks; Network Effects; Internet and the Web; Financial Services Industry; Retail Industry; Technology Industry; United States; Australia

Citation

Moreno, Antonio, Donald Ngwe, and George Gonzalez. "Afterpay U.S.: The Omnichannel Dilemma." Harvard Business School Case 519-086, April 2019.
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About The Author

Antonio Moreno

Technology and Operations Management
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Related Work

    • March 2021 (Revised October 2021)
    • Faculty Research

    Afterpay U.S.: The Omnichannel Dilemma

    By: Antonio Moreno and Anibha Singh
    • April 2021 (Revised September 2021)
    • Faculty Research

    Afterpay U.S.: The Omnichannel Dilemma

    By: Antonio Moreno and Anibha Singh
Related Work
  • Afterpay U.S.: The Omnichannel Dilemma By: Antonio Moreno and Anibha Singh
  • Afterpay U.S.: The Omnichannel Dilemma By: Antonio Moreno and Anibha Singh
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