Afterpay Leaps On ASX Despite Rival Launch Plan By PayPal
Shares in Afterpay leapt 8.4 percent higher yesterday, following an overnight rebound in US technology stocks. The shares jumped, despite news that PayPal, a rival US payments company, is planning to offer a rival service in Australia (CDN, yesterday).
PayPal already claims around nine million Australia customers and plans to offer them the option to pay off purchases up to $1500 in four interest-free instalments.
Andrew Toon, PayPal Australia GM, yesterday revealed further details of his company’s plans, saying: “Australian consumers are looking for more choice and flexibility and ‘PayPal Pay in 4’ gives them yet another way to purchase securely using PayPal.”
He said the new service will be launched in “early June 2021”.
“PayPal’s digital wallet is the only solution that provides multiple ways to pay all in the one place – instantly with debit or credit card; 21 days later with our Pay After Delivery option; and now in four interest-free instalments using PayPal Pay in 4.
“Our Australian business customers have been requesting buy-now, pay-later functionality from us, and we’re excited that we can offer PayPal Pay in 4 to them at no additional cost.
“Businesses offering PayPal checkout online will have their customers automatically be able to use the BNPL option in their PayPal wallet at point of sale, making it an extremely easy option to offer customers.