Afterpay shares up on Google Pay and Apple Pay partnership news
We look at the implications of Afterpay’s just-announced partnership with Apple Pay and Google Pay.
Afterpay share price up on partnership reveals
Australian-based, global fintech company Afterpay (APT) today revealed that it has partnered with Apple and Google to make its buy now pay later payment solutions available for in-store purchases, across the United States.
Investors responded bullishly to news of these partnerships, bidding the stock up 4.22%, to $69.36 per share by 11:11AM (Canberra time).
The Afterpay share price has risen a shade over 30% in the last month, as investor hype around companies benefitting from the accelerated shift to e-commerce, as a result of the coronavirus pandemic – persists.
Details of the Apple Pay partnership
Under the Apple-Afterpay agreement, Apple Pay users will be able to take advantage of Afterpay’s buy now pay later functionality while making in-store purchases – within the United states – from July 2020 onwards.
Looking at the details behind this offering: at the time of purchase, users who have an activated Apple Wallet simply need to open the Afterpay app and tap the ‘card’ icon on their smart phone. By doing so, shoppers will be able to take advantage of APT's four instalments payment option.
Like the company's other payment options, users will incur no fees, should they make their repayments on time.
Speaking to the benefits of this partnership, Afterpay's co-founder and U.S. Chief Executive, Nick Molnar said:
'As we enter the second half of the year and retail re-emerges across the world, it's critical we help our partners drive business growth, both online and offline.'
'As a proven solution for driving incremental sales and new customer growth, we are thrilled to introduce our new omni-channel solution to U.S. retailers as they begin to open their doors and bring shoppers back to their physical stores,’ Mr Molnar finished.
The company pointed out that on average, merchants offering APT’s payment solutions see an average increase in conversion of 22%.
Holding true to the company's focus on retail, Forever21, Fresh, Skecher, and Solstice Sunglasses will be some of the first merchants to offer the Apple-Afterpay functionality to users.
The company said it would be rolling out its in-store Apple Pay functionality within Australia over the coming months. In saying that, Afterpay has had in store payment solutions within Australia since 2016.
Details of the Google Pay partnership
The Google-Afterpay partnership, like the above discussed Apple Pay partnership, will allow users making purchases with Google Pay to take advantage of Afterpay’s buy now pay later payment solutions.
Forever21, Fresh and Solstice Sunglasses will be among the first retailers to offer this integrated payment option.
Importantly, because both the Google and Apple partnerships take advantage of pre-existing payment terminals, merchants will bear no additional costs of implementing these solutions.
At the time of writing APT traded at $68.46 per share.
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