Huge Stateside Expansion Boosts Afterpay
Afterpay shares have shot up this morning as the buy-now-pay-later giant brings its service to a lineup of popular US online retailers.
Stock in Afterpay jumped to $130.17 per share at time of writing, up from $122.19 at close of business yesterday, following the announcement that US Afterpay customers would be able to make purchases through its app’s Shop Directory from sites including Amazon, CVS, Dell, Macy’s, Nike, Target, and Walgreens. The process involves creating and using a one-time virtual card, after which the customer will be able to pay off the purchase in four instalments as usual.
With US e-commerce growth nearly tripling year-on-year in the first quarter of 2021, and online sales going up a record 43.7 per cent over the 2020 calendar year, the expansion comes at a good time, said Zahir Khoja, General Manager of Afterpay North America.
“As we celebrate the physical re-opening of stores, consumers still want the convenience and flexibility of buying with the click of a mouse as part of their ‘new normal’.
“We are thrilled to continue to support our customers by allowing them to shop every day at their favourite brands with Afterpay for things they need and want in their lives,” said Khoja.
Amazon Australia currently does not support Afterpay, though it does accept rival Zip. Between them, the merchants just added by Afterpay represent almost half of total e-commerce volume in the US.