Publications
Publications
- March 2021
- HBS Case Collection
Afterpay U.S.: The Omnichannel Dilemma
By: Antonio Moreno and Anibha Singh
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
Online Advertising; 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 Strategy; Market Entry and Exit; Market Platforms; Multi-Sided Platforms; Product Development; Supply Chain Management; Business and Stakeholder Relations; Networks; Network Effects; Online Technology; Financial Services Industry; Technology Industry; United States; Australia
Citation
Moreno, Antonio, and Anibha Singh. "Afterpay U.S.: The Omnichannel Dilemma." Harvard Business School Teaching Note 521-074, March 2021.
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