The news: Fanatics made Afterpay its official buy now, pay later (BNPL) partner, per a press release.

Eligible shoppers can choose Pay in 4 or Pay Monthly for products across Fanatics, Lids, the NBA Store, the NHL Store, and other partner ecommerce shops. 

Why this matters: Sports fandom across the US is vast—80% of adults say they have a favorite sport to watch, per Gallup. And showing off team pride through collectible merch is common for high-income earners:

• More than half of high-income earners ($200,000+) purchase sports merchandise at least a few times a year, and 19% do so monthly or more often, per PWC.
• 63% report buying hats; 59% say they bought jerseys.
• And 31% of those fans cited affordability as the top purchase driver in their team shopping.

With 62% of fans planning to spend money on sports fandom this year and roughly 47% of fans taking on debt to support their hobby, per a survey from National Debt Relief, Afterpay has an opportunity to snag installment volume from consumers trying to avoid revolving debt.

Fanatics also stands to get loyalty from younger consumers for BNPL availability.

• 38% of Gen Zers and millennials say that BNPL availability for non-grocery retail is very or extremely influential on their choice of merchant or store, per a PYMNTS report.
• 46% of Gen Zers and 54% of millennials said the same for events and experiences.

Implications for payment providers: BNPL availability is growing in the sports industry—and there’s room for providers to reach more key consumers.

• There’s premium demand for sporting opportunities across merch and ticketing, per PWC. Providers trying to seize their discretionary spending should embed installment offers for tickets, merchandise, and travel & lodging for those traveling to attend sporting events.
• BNPL providers also have an opportunity to prioritize sports-related ads on their FMNs to drive more loyalty for their apps.

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