The Afterpay (ASX: APT) share price has jumped 3% this morning after the buy now, pay later company announced more US growth.
What is Afterpay?
Afterpay is the owner of the popular “buy now, pay later” app. As of 2019, Afterpay had over 4 million registered users worldwide, making it one of Australia’s true technology success stories. Afterpay is trying to emulate its outstanding success in Australia by expanding its reach into the UK, using the ‘Clearpay’ brand name, and into the USA, where it has signed major social influencers to endorse its service.
Afterpay’s US growth
Afterpay has announced that there are now more than five million active shoppers in the US and nearly nine million US customers who have joined the platform including more than one million new customers using Afterpay during the COVID-19 period of the last 10 weeks.
Afterpay said the weekly run rate increased 30% to 40% compared to January and February.
The BNPL business said over 15,000 brands and retailers are offering or are in the process of offering Afterpay to their customers. Afterpay US processed $2.4 billion year to date to March 2020, an increase of 354% compared to FY19.
In April 2020 Afterpay US had more than 15 million app and site visits and Afterpay’s US shop directory contributed almost 10 million lead referrals to its retail partners.
Afterpay co-founder Nick Molnar said: “At a time in which eCommerce has become the primary way people are shopping, there is a growing interest and demand among consumers to pay for things they want and need over time using their own money – instead of turning to expensive loans with interest, fees or revolving debt. We feel so grateful to partner with the merchant community to support their shoppers and help them attract more customers as commerce and retail starts to rebound over the next several months.”
Afterpay’s share price is now at an all time high. Afterpay clearly has plenty of potential, but there’s so much expectation built in. I think there are better tech ideas to look at:
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Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.