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.

Want to trade BNPL stocks: long and short?

Create an IG trading account or log in to your existing account to get started now.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.