- Afterpay has reported strong growth in the US market.
- The buy-now-pay-later payment platform says it’s taken less than six months to get the same growth that took two years in Australia.
- More than $A115 million of underlying sales have been processed through the Afterpay platform.
Afterpay Touch shares soared after the buy-now-pay-later payments platform released a business update on its growing sales network and early success in the US.
The shares surged 14% before settling 10.4% higher at $14.37.
The company says traction with millennial-focused retailers in the US and their customers has been strong despite it being less than six months since launch.
A key element in the Afterpay’s strategy is the shifting of power to the millennial consumer. By 2030, millennials will earn two out of every three dollars in Australia.
Afterpay says the rapid pace of growth in the US has been greater than that experienced in Australia where similar results took two years.
More than $A115 million of underlying sales have been processed through the Afterpay platform to end of October in the US.
More than 300,000 consumers and 900 retailers have transacted with Afterpay in the US.
Steve Madden Group, a leading footwear and fashion accessories retailer, said: “We were very excited to launch Afterpay in the US market after seeing its success in Australia. In the first week of going live, Afterpay was the second most popular payment method after credit cards and we saw a 25% uplift in average order value.”
Among those retailers signed up are Urban Outfitters, Free People, Anthropologie, Revolve, Morphe, Quay.
“We are pleased with our pipeline of over 1,300 additional retailers having signed agreements with Afterpay or in the process of integrating on our platform,” the company says.
“Our retailer acquisition strategy remains focused on the online apparel sector and introducing the Afterpay service in partnership with leading millennial retailers.”
The total potential gross merchandise value of retailers who are now live in the US with Afterpay — about $US3 billion or $A4.2 billion — is larger than the total online apparel market in Australia.
Business Insider Emails & Alerts
Site highlights each day to your inbox.