Tag Archives: AFTER PAY

Afterpay Australia explores global records as first-half sales double | Instant News

(Reuters) – Afterpay is exploring additional overseas listings amid growing US investor interest, Australia’s buy-now-pay-later said on Thursday after reporting first-half sales more than doubled.

Fintech Australia and its global competitors such as Klarna, Affirm and Sweden’s Zip Co have seen explosive growth since the pandemic locked in large parts of the world and made more people turn to online shopping.

Afterpay shares have gained more than 1,500% since March, establishing itself as the 12th most valuable company in Australia.

Afterpay also said it raised A $ 1.25 billion ($ 995 million) in convertible banknotes in a complex deal to buy Matrix Partners stock from its US business – which accounts for 43% of its sales. The United States is also a key growth market for the industry where it struggles with fast-growing Klarna.

Klarna, who is reported to be tapping into more private funding, posted his full-year results on Thursday evening.

Afterpay’s legal losses more than doubled to A $ 79.2 million as the strong growth of its UK business pushed the unit’s valuation higher and increased the value of put options held by other companies. Zip also posted a much bigger half-year loss after buying New York counterpart Quadpay.

While Afterpay’s gross transaction loss fell to 0.7% – indicating fewer customers skipping payments – margins also fell slightly to 2.2% from six months ago.

Transactions made through Afterpay totaled A $ 9.8 billion in the six months to December 31, double the A $ 4.8 billion processed last year, supported by strong holiday spending.

Active subscribers jumped 1.9 million to 13.1 million in the three months to December.

($ 1 = 1.2547 Australian dollars)

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Forward Samuel


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Afterpay Australia’s first quarter sales more than doubled due to US growth | Instant News

(Reuters) – Australia Afterpay Ltd said on Wednesday underlying sales in the first quarter more than doubled, helped by strong growth in the United States where buy-now-pay-later added nearly 1 million new customers over three months.

FILE PHOTOS: Company Afterpay logo seen in storefront in Sydney, Australia, July 9, 2020. REUTERS / Stephen Coates

The US Afterpay business showed the second-fastest growth rate among all its regions in the quarter, with underlying sales there more than tripling to A $ 1.6 billion ($ 1.14 billion) from a year earlier.

The results highlight the United States as the biggest prize pool in the sector but Afterpay faces stiff competition there from the likes of Klarna Sweden and more established financial firms like PayPal Holdings.

Arguably Australia’s hottest stock this year, Afterpay now had 11.2 million active subscribers at the end of September, 1.3 million more than three months ago.

Afterpay shares were up 8.2% to A $ 103.8 at midday, while the broader market slumped.

The COVID-19 pandemic has accelerated the switch to online shopping and deepened the appeal of alternative credit companies, which are offering buyers interest-free small installment loans.

While some analysts said US figures missed a bit, Citigroup and UBS said Afterpay’s underlying sales tracked ahead of their first-half forecast as the December quarter tends to favor larger spending.

Afterpay said that so far in October the average number of new subscribers was 15,000 per day, compared with 12,500 per day during the quarter.

Total principal sales for the three months ended September 30 were A $ 4.1 billion, compared with A $ 1.9 billion in the previous corresponding period.

The company added that its global expansion plans in parts of mainland Europe and Asia are going well.

Afterpay outlined last week’s plans to diversify its product selection in Australia by offering a savings account through Westpac Banking Corp along with other budgeting tools and services that analysts believe could be adopted globally.

($ 1 = 1.4027 Australian dollars)

Reporting by Anushka Trivedi and Nikhil Kurian Nainan in Bengaluru; Edited by Forward Samuel and Stephen Coates


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Afterpay, Westpac is linked to an Australian savings account | Instant News

(Reuters) – Australian buy-now-pay-later Afterpay Ltd will work with Westpac Banking Corp to offer savings accounts, the two companies said on Tuesday, signaling a shift by alternative credit companies to mainstream banking.

The accounts will be available to more than three million Afterpay customers in Australia starting next year via the Westpac digital banking platform, and will help provide companies with greater insight into the financial habits of their customers, he said.

The announcement sent Afterpay’s shares up 6% and crossing the A $ 100 mark for the first time, highlighting a surprise gain for shares that were only A $ 8 in March.

For Westpac, which last month hit a record A $ 1.3 billion settlement with the Australian financial crime agency for allowing illegal payments, the venture marks a push into fintech and will help it target younger customers.

Afterpay will be Westpac’s first digital banking platform customer, and the Melbourne-based company will also offer budgeting tools and other services from time to time. This partnership will take effect in the second quarter of 2021.

Afterpay and its buy-now-pay-later partner, which allows users to buy goods and pay more than interest-free installments, have been heralded as a traditional credit bully and soaring in popularity as the coronavirus crisis accelerates the move online.

RBC Capital Markets analyst Tim Piper said in a note that processing payments via Westpac could lower costs for Afterpay, while more customer data could result in “better credit decisions and potentially lower loss rates.”

Although Afterpay does not currently perform credit checks on its customers, it said the tie opened the door to new revenue streams and could be adopted globally.

“We will gather greater insights into how they (customers) prefer to manage their finances and better understand their savings goals,” said Afterpay Chief Executive Anthony Eisen.

Rival Zip Co Ltd also on Tuesday expanded its in-store offering for users to any shop that accepts Visa, expanding the company’s presence.

Reporting by Nikhil Kurian Nainan and Anushka Trivedi in Bengaluru; Edited by Cynthia Osterman and Richard Pullin


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