Threadheads has eCommerce payments down to a tee with Airwallex’s Klarna and Afterpay integrations

Since its launch in 2019, Threadheads has fast become a world-leader in irreverent and playful clothing. Offering eye-catching designs, their made-to-order items are loved in Australia and around the world.

Established in Melbourne, Threadheads initially sold on eBay to mostly local customers before moving to Shopify to expand to the UK and US. Along the way, they started using Airwallex, picking up our suite of global financial operations tools to supercharge their growth.

We spoke to Mirko (Mitch) Ancellotti, Head of Operations and Finance, about Threadheads’ meteoric growth, and how their new addition of Buy Now, Pay Later (BNPL) payment methods through Airwallex has helped them get even more awesome tees around the world.

Non-traditional businesses need non-traditional solutions

Coming from a corporate background, Mitch was well aware of the workings (and limitations) of ‌traditional Australian banks. 

“I'm pretty familiar with the way traditional banking works and I think it is a very stable way of offering financial instruments to businesses,” he says. “But it's probably a little bit outdated.”

New digitally-based business models mean that the potential for SMEs to unlock global growth is more accessible than ever. Our Global Accounts feature was Threadheads’ entry point to Airwallex, because it simply opened up a world of global finance without the red tape.

“Now any small business can sell not only down the road but also overseas and on any other continent, in any other time zone, in any other currency.”

Mitch Ancellotti

Head of Operations and Finance

“That's where Airwallex came in with the ability to process payments on a daily basis to our suppliers, and to our collaborators overseas, without having to face extremely high foreign transaction costs which the traditional bank used to impose on businesses.”

Airwallex isn't a bank, but we do offer many similar solutions. We partner with financial providers around the world, which make up our powerful global infrastructure.

“I see Airwallex like a public digital bank, pretty much allowing us to be able to pay and receive money anywhere in the world.”

Unlocking the impact of Buy Now, Pay Later

Buy Now, Pay Later (BNPL) is rapidly becoming one of the most popular payment methods a merchant can offer. However, adding these methods to your checkout isn't always straightforward. 

“We were really trying hard back in time to reach out to Klarna and Afterpay to offer these payment methods everywhere in the world, or at least in the main markets; the UK, Europe and the US, just because it's something that the customer wants,” says Mitch.

Unfortunately, Mitch had difficulties in integrating these services into the Threadheads checkout, especially when trying to establish global capabilities from here in Australia.

“We understood that there was a border limitation to offer this service from Australia to Europe to the UK and so on... So we just focused on doing it in Australia and New Zealand.”

Mitch Ancellotti

Head of Operations and Finance

“The growth was instant as soon as we turned [BNPL] on.”

Mitch’s Airwallex Account Manager, Yvia Magan-Parker, reached out, explaining that we could help Threadheads offer BNPL globally with easy checkout integrations and local settlements. Mitch switched on Klarna straight away.

“We started in August 2024 and we saw a surge in orders purchased from those markets,” recalls Mitch. He turned on Afterpay through Airwallex shortly after, and Mitch explains that the impact has been significant.

Speaking to us in November 2024, Mitch says, “Between Airwallex and Afterpay, we started around the 10th of September, we did about 2300 orders within the first two months. I would say only 30% would have converted into purchases via other payment methods.”

As well as purchase order numbers, average order volume (AOV) has also jumped for customers that are using BNPL.

Mitch Ancellotti

Head of Operations and Finance

“I always thought with BNPL that the average order value would be slightly higher compared to other payment methods because you can split the amount that you're going to pay right now. So I saw that get closer to $90 to $100 compared to our $70 average order value with traditional payment methods. It was a massive, massive win for us.”

Many Airwallex customers using these new features have experienced these instant uplifts, without even marketing the new payment methods. For Threadheads, they saw these significant gains just by listing Klarna and Afterpay on their product pages and at the checkout. 

Generating passive income with Yield

Another Airwallex product that has been a massive hit with the Threadheads team is Yield, our high-rate savings solution that gives businesses the opportunity to earn competitive returns on idle funds in both AUD and USD. No lock-up periods or penalties apply, meaning that businesses can have access to their cash, fast.

“Another feature that I absolutely love is the Yield account,” says Mitch. “It’s a great tool for us because we can just save money. We can accrue money in a savings account with Airwallex in a different currency if we want, and we can have a good return.”

Mitch Ancellotti

Head of Operations and Finance

“I believe we probably earned around $15,000 since last November when we started. So that was literally passive income.”

Before using Yield, Mitch was keeping funds in a Westpac cash savings account. “We never even bothered about going with a term deposit, because usually you have to select a month or a specific period that you won't have access to the money, or if you do you may actually have to pay penalties to withdraw.”

“Instead Airwallex was like 2-4 days? Let's say a new expense comes up or a new project comes up that we need to invest in. I can withdraw the money without worrying about anything.”

For Threadheads, the feature has worked extremely well, empowering the team to neutralise the costs of Airwallex. Mitch reflects that this makes it feel like Airwallex is a free service. 

“Obviously we're paying to use Airwallex, nothing is for free. But you also offer back to your clients a way to offset the cost of using Airwallex. So it feels like pretty much a free-of-charge service.”

Truly tailored customer service

Finances, payments, expenses… We know how important these operations are to a growing business. We’re not like ‌traditional banks that have hundreds of thousands of consumer customer accounts. We only serve businesses, and we pride ourselves on deeply understanding their needs. 

When dealing with a traditional bank, which can be time-consuming and impersonal, Mitch explains that the service couldn't be more different. 

“So I like this personal touch and that you do things in a different way compared to a traditional bank.”

“When we face any issues, it's very easy. Like Yvia calls me, I call Yvia. Westpac is our local bank and I don't know who our account manager is. If I have to speak with them, I need to go through the Know your Customer thing every single time, and I respond to multiple questions from a recorded voice. “

Mitch Ancellotti

Head of Operations and Finance

"Something that we really appreciate is that everybody sits at the table and really tries to understand our business... They try to offer a really tailored solution."

Your partner in global growth

We are stoked to see this Melbourne-born business sharing their designs with the world, and we’re honoured to be a part of their global domination! 

When asked what he'd say to other Aussie eCommerce businesses thinking about making the switch to Airwallex, Mitch’s message was loud and clear. 

“If they're expanding fast globally they need a fast, flexible and smart solution that allows them to keep focusing on their business without having to worry about bureaucracy or headaches related to things like banks and entities. I think Airwallex is the best partner to have when it comes to going and conquering the world.”

Ready to get started? Sign up for our Business Account now to explore our next-generation finance tools. 

Disclaimer: The information contained in this testimonial is factual information only and is not intended to imply any recommendation or opinion about a financial product. Any statements made in this testimonial about other companies’ products have not been independently verified.