Afterpay Touch Group Ltd (ASX: APT) has given a business update showing that it has achieved 300,000 consumers in the US.

Afterpay Touch Group is a leading ‘buy now, pay later’ business with operations in Australia, New Zealand and the US.

Afterpay’s Business Developments Update

United States

Since launching less than six months ago Afterpay reported that it has achieved over $115 million in underlying sales in the US by the end of October 2018. This has been transacted with 300,000 consumers and over 900 retailers.

Afterpay also revealed that it has a pipeline of more than 1,300 retailers, or is in the process of integrating them onto the platform.

For now, Afterpay said that it remains focused on the online apparel sector, particularly with millennial retailers.

Some of the retailers that Afterpay has signed include Urban Outfitters, Steve Madden, Skechers and Kylie Cosmetics.

Afterpay said that the gross and net transaction loss profile is within the ‘budgeted range’ and, whilst initially higher, management believe those metrics will reduce like it did in Australia.

The company is targeting an FY19 EBITDA loss in the US of around $20 million, before accounting changes and foreign exchange impacts (click here to learn what EBITDA means).

United Kingdom

Afterpay plans to expand into the UK and this is going according to plan as announced in previous updates.

Management believe this business will require a smaller investment to launch. UK operating EBITDA losses in FY19 are expected to be half to 70% of the US business.

Australian & New Zealand expansion

Afterpay’s local expansion included a number of additional retailers including Wesfarmers Ltd’s (ASX: WES) Kmart and Target, Kogan.Com Ltd (ASX: KGN), EB Games, Boohoo, Village Roadshow Ltd (ASX: VRL), Lovisa Holdings Ltd (ASX: LOV) and Harris Scarfe.

Afterpay has also been working on expanding into new industries, particularly the healthcare sector. In dentistry it has won agreements with four businesses, including Pacific Smiles Group Ltd (ASX: PSQ), and in optometry it signed OPSM.

Repeat transactions still accounts for over 90% of monthly underlying sales and net transaction losses are similar to FY18, equating to less than 0.5% of underlying sales.

Regulation?

Afterpay re-iterated the defence of its business model, saying that it is subject to a wide range of corporate and ASX regulation, including Australian consumer law and is supportive of appropriate regulatory oversight.

In its defence, it reminded readers that it is a free product if customers pay on time, it does not charge interest and it does not charge setup or account-keeping fees.

The Afterpay share price has risen 11% in early trade on Thursday in response to this update, according to CommSec.

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