Afterpay jumps on US retail giant deal
Afterpay jumped 6% on Thursday, extending recent gains to take the BNPL leader back over $130 per share, leaving behind a low of $82 just six weeks ago. The rise came after the company announced that it’s making its service available to select app customers at the most popular and largest merchants in the United States. The well-known merchants including Amazon, CVS, Dell, Kroger, Macy’s, Nike, Sephora, Target, Victoria’s Secret, Walgreens and Yeti, collectively represent almost half of all U.S. eCommerce volume.
Available only through the Afterpay app, select customers can shop at merchants by simply choosing their favourite brand in the Afterpay Shop Directory and paying with Afterpay. Customers enjoy all the same benefits of using Afterpay, including the ability to pay over time without having to pay interest or finance charges.
When customers make use of the new option Afterpay uses a one-time card to facilitate the purchase. The payment details are automatically populated at checkout, ensuring a seamless checkout experience.
U.S. eCommerce growth nearly tripled in the first three months of 2021 compared to a year ago, as more consumers shopped from the comfort of their home. Online sales soared a record-breaking 43.7% in 2020 and grew 39.0% in Q1 2021, the second-highest pandemic period increase behind the Q2 2020 peak.
Afterpay confirm that the vast majority of Afterpay customers start their shopping journey on the Shop Directory in the Afterpay app. On a monthly basis, Afterpay sends approximately 31 million lead on average to its merchant customers from its Shop Directory.
Zahir Khoja, General Manager of Afterpay North America said, “Over the past year, we all relied on online shopping for the things we needed during the pandemic. But, 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.”