IKEA rolls out 'huge' payment change

IKEA has made the decision to start offering afterpay in stores, the latest of the large retailers to take up the “Buy now, pay later” strategy.

The company will be hoping the move will entice customers as the cost of living puts a strain on families’ Christmas budgets.

Data from Afterpay claims that 41 per cent of people are expecting to use buy now pay later platforms to buy at least half of their presents this year.

IKEA says the payment method will create “a more convenient shopping experience”..

“Affordability has never been more important to our customers, and now with Afterpay, we can provide even more flexible ways to purchase the home furnishings of their dreams,” Daniela Altiparmakova, Deputy Digital Manager at IKEA Australia said.

The payment method will be available at IKEA’s ten stores around the country or online.

Last Christmas Australians spent $5 billion on purchases made with Afterpay, with home and garden stores like Bunnings helping that growth.

“Over the past five years, we’ve seen a 127% increase in Afterpay sales within the home and garden category,” Katrina Konstas, EVP, Country Manager at Afterpay said.

In September, Afterpay introduced a self-regulated spending cap for Australians using the service.

The average debt that Australians owed the company was $964 in September 2024.