The Afterpay (ASX: APT) share price is up after announcing a deal with Qantas (ASX: QAN) frequent flyer.
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.
What is the partnership with Qantas?
Qantas and Afterpay have teamed up which will allow Qantas Frequent Flyers (QFF) to earn points on the buy now, pay later platform.
New people to Afterpay will earn 500 QFF points when they link to their Afterpay account. $1 spent will earn 1 QFF point, up to 5,000 Qantas points.
If people already shop with Afterpay they’ll earn 1 Qantas point per $1 spent (after they’ve initially spent $1,000), up to 5,000 points. The offer for existing Afterpay customers is limited to the first 50,000 members who sign up.
Qantas Loyalty CEO Olivia Wirth said: “Financial services is one of the most popular ways to earn points in the program, it’s the quickest and easiest way to build your points balance.
“With our 13 million members all having different spending habits and financial preferences, it’s great to be able to offer more options and more rewards.”
Afterpay co-founder and CEO Anthony Eisen said partnering with one of Australia’s largest and most recognised loyalty programs would provide significant upside for Afterpay customers:
“We are always looking for ways to add value for our customers and this partnership between two iconic Australian brands is a great way to reward them for shopping with Afterpay.”
Summary
It seems like a smart move to link up these two businesses, though I’m not sure how much earnings it will actually generate for both ASX shares. Neither company declared that it was a price sensitive announcement.
I’m not sure if either company is a buy today. Afterpay’s shares have run extremely hard whilst Qantas’ recovery looks further away with the ongoing outbreak in Melbourne. Prior to COVID-19, the Sydney-Melbourne route was one of the most active links in the world. I’d rather buy something like Bubs (ASX: BUB).
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Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned.
