Gap adds ‘buy-now-pay-later’ option with Afterpay partnership

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Gap Inc. and “buy-now-pay-later” service Afterpay have partnered to offer flexible payments to customers across Gap’s portfolio of brands, including the namesake, Banana Republic, Old Navy and Athleta. Gap says the addition is due to demand from customers, and brings the number of merchants using Afterpay to 14,000. More retailers are adding a flexible pay option, with Klarna another major service in the category. That company recently announced a partnership with Etsy Inc., joining retailers like Macy’s Inc. on its roster of merchant partners. Macy’s has also taken a stake in Klarna, though the value of that stake is undisclosed. Gap stock has gained 29.7% for the year to date while the S&P 500 index is up 10.6% for the period.
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