Afterpay Inks Apple Pay, Google Pay Deal In Credit Card War
Afterpay has continued to intensify the war on credit cards, by inking a deal with Apple Pay and Google Pay to offer installment-based payments for purchases made via their digital wallets.
The ASX listed company will pay a fee to the tech giants to facilitate the agreement, which is set to increase customer adoption whilst decreasing the roll-out costs of new retail merchants.
Afterpay will activate the service via Google Pay and Apple Pay in the United States this month, with Aussies gaining access to ‘tap and pay’ installment services in “coming months.”
In Australia, around one quarter of Afterpay’s sales derive from in-store payments, contrary to the dominance of online sales in the United States.
Shares in Afterpay climbed after the announcement to exceed $68.
Some commentators claim that rates negotiated with Mastercard and VISA should aid offsetting feeds to Apple and Google.
Many market analysts assert the news accelerates a trajectory away from traditional banking credit cards, by making installment based payments even easier than before.
Last week, Afterpay revealed it had exceeded over 10 million global users.
The news follows significant back-and-forth between the ‘big 4’ Australian banks and their enablement of Apple Pay in years prior, with ANZ the first of its rivals to ink a deal.