The Scoop on Using Afterpay at Target: What You Need to Know

Hey there, savvy shopper! If you‘re a fan of both Target and Afterpay, you‘ve probably wondered if you can combine the two for the ultimate retail therapy experience. Well, I‘ve got good news and bad news. The good news is that yes, Target does accept Afterpay…but with a few caveats.

Content Navigation show

In this ultimate guide, I‘ll give you the full scoop on using Afterpay at Target, including what‘s changed recently, how it works online, and some helpful tips to keep in mind. Plus, I‘ll share some insights on why "buy now, pay later" options like Afterpay have become so popular. Let‘s dive in!

The Current Status of Afterpay at Target

First, a quick history lesson. Prior to 2021, you could use Afterpay both in-store and online at Target in the U.S. However, Target made the decision to remove the in-store Afterpay option in September 2021. According to a Target spokesperson, this change allowed them to "offer guests additional flexible payment options" like Affirm and Sezzle (more on those later).

So, as of 2023, here‘s the deal:

  • You can still use Afterpay for online purchases at Target.com and in the Target app
  • Afterpay is no longer accepted for in-store purchases at Target locations in the U.S.
  • If you‘re shopping at Target in Australia or New Zealand, you can use Afterpay both online and in physical stores

How to Use Afterpay for Target.com Purchases

Alright, so you‘ve filled your virtual Target cart with goodies and you‘re ready to check out. Here‘s how to use Afterpay to pay:

  1. At checkout, select Afterpay as your payment method. You‘ll be redirected to sign in to your Afterpay account or apply for one if you‘re a new user.

  2. If approved, Afterpay will split your total purchase amount into 4 equal installments. You‘ll pay the first installment at the time of purchase, and the remaining 3 installments every 2 weeks.

  3. Make sure to have a valid payment method linked to your Afterpay account (credit/debit card or bank account) to cover the installments.

  4. Afterpay will run a soft credit check to confirm your identity and assess your ability to make the payments. This won‘t affect your credit score.

  5. Once you‘ve completed the Afterpay checkout process, you‘re all set! Target will process and ship your order just like any other purchase.

Important Things to Note

While Afterpay can be a convenient option, there are a few things to keep in mind when using it at Target.com:

  • Minimum purchase amount: Your order must total at least $35 to be eligible for Afterpay.

  • Product exclusions: Some items cannot be purchased with Afterpay, including gift cards, prepaid cards, and alcohol. Target has a full list of excluded products in their terms and conditions.

  • Returns and refunds: If you return an item purchased with Afterpay, Target will refund the amount back to your Afterpay account. This will be applied to your next installment, or refunded to your linked payment method if you‘ve already paid the balance.

  • Late fees: If you miss an Afterpay installment, you‘ll be charged a late fee of $8. Afterpay may also prevent you from making new purchases until your account is up to date.

How Target‘s Afterpay Policy Compares to Other Retailers

Target isn‘t the only major retailer to embrace the "buy now, pay later" trend. In fact, Afterpay and similar services are now available at many of your favorite stores, both online and in person. Here‘s a quick comparison:

  • Walmart: Accepts Affirm for purchases over $144, with APRs from 10-30% depending on creditworthiness. Afterpay is not currently accepted.

  • Amazon: Offers monthly installment payments on select items over $50 through Amazon Financing (backed by Affirm).

  • Macy‘s: Accepts Klarna for online purchases, which splits the cost into 4 interest-free payments. Macy‘s also has its own credit card with special financing offers.

  • Ulta Beauty: Uses Afterpay for online and in-store purchases over $35, with 4 interest-free installments.

As you can see, the specifics vary by retailer – but the overall concept is the same. By partnering with BNPL providers, stores can give customers more flexibility and purchasing power. According to a study by Cardify, 45% of shoppers said they were more likely to complete a purchase if a BNPL option was offered.

The Rise of Buy Now, Pay Later

So why has "buy now, pay later" exploded in popularity recently? There are a few key factors driving the trend:

  1. Increased online shopping: The pandemic accelerated the shift to e-commerce, and BNPL options provide a seamless checkout experience for digital shoppers.

  2. Financial flexibility: By breaking up purchases into smaller installments, BNPL can make big-ticket items feel more affordable. 44% of consumers said they use BNPL to avoid paying credit card interest (Ascent).

  3. Generational preferences: Younger shoppers (Millennials and Gen Z) are especially drawn to BNPL. 61% of Gen Z and 60% of Millennials have used a BNPL service, compared to 31% of Gen X and just 13% of Baby Boomers (eMarketer).

  4. Credit card alternative: For those with limited credit history or who prefer not to use credit cards, BNPL can be an appealing financing option.

  5. Merchant benefits: Offering BNPL can help retailers boost sales, increase average order values, and reduce cart abandonment rates. It‘s a win-win for stores and shoppers alike.

Is Buy Now, Pay Later Right for You?

While BNPL can be a useful budgeting tool, it‘s important to approach it with a thoughtful strategy. Before you dive in, consider these tips:

  • Stick to a budget: Only charge what you can afford to pay off within the installment period. Avoid the temptation to overspend just because you can break up the payments.

  • Read the fine print: Familiarize yourself with the terms and conditions of your BNPL plan, including any interest rates, fees, or penalties for late payments.

  • Keep track of due dates: With multiple installments to juggle, it‘s crucial to stay organized. Consider setting calendar reminders or automating your payments to avoid missed due dates.

  • Build credit responsibly: If used wisely, BNPL can be a way to demonstrate responsible borrowing and build your credit profile. Just be sure to make all your payments on time and in full.

Ultimately, whether buy now, pay later makes sense for you depends on your individual financial situation and spending habits. But by doing your research and using BNPL strategically, you can enjoy the perks of flexible payments while keeping your budget on track.

The Bottom Line

To recap: While Target no longer accepts Afterpay for in-store purchases in the U.S., you can still take advantage of this flexible payment option when shopping online at Target.com or in the Target app. And if you‘re a Target shopper in Australia or New Zealand, you can use Afterpay both online and in stores.

Just remember to familiarize yourself with the terms and conditions, stick to your budget, and make payments on time to avoid any added fees. With these tips in mind, Afterpay can be a savvy way to score your Target haul while spreading out the cost.

Happy shopping, and thanks for reading! I hope this guide has given you a comprehensive look at using Afterpay at Target. For more retail tips and tricks, be sure to check out my other articles. Until next time!