Afterpay

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Afterpay Touch Group
Afterpay-logo.svg
Type of business Public
Type of site
Financial technology
Traded as ASXAPT
Founded 2015; 3 years ago (2015)
Headquarters Sydney, Australia
Area served Australia, New Zealand
Key people

Nicholas Molnar (Co-Founder, CEO)

Anthony Eisen (Co-Founder)
Industry Financial technology
Revenue Increase US$24.97 million (2017)[1]
Total assets Increase US$148.81 million (2017)
Subsidiaries Touchcorp Limited
Afterpay US, Inc.
Afterpay Pty Ltd
Website www.afterpay.com
Users Increase 2.2 million (2018)
Current status Active
Native client(s) on Android
iOS
Windows

Afterpay Touch Group is an Australian financial technology company operating in Australia and New Zealand. It allows retailers to offer their customers to buy now and pay later without requiring a traditional credit, upfront fees or interest.

Usage[edit]

Merchants offer Afterpay to customers, either online or instore. The customer pays a quarter of the purchase amount to Afterpay who pays the merchants upfront. Customers pay the remainder for the items in four fortnightly instalments. If the customers makes all their payments on time, they pay nothing more than the purchase price. Failure to make their payments will result in a late fee. Customers are required to be over eighteen years of age to use the service.

A report from ASIC revealed that late fees make up 24% of Afterpay's revenue.[2] Critics have argued that the service may cause financial stress and the accumulation of debt.[3]

Overseas Expansion[edit]

In January 2018, US venture capital fund Matrix Partners said it would invest $19.4 million in Afterpay to support its entry into the US retail market, which is worth $US3.8 trillion in total annual turnover, including $US450 billion in online purchases.[citation needed]

Afterpay launched in the US in mid-May 2018, over $11m of underlying sales was processed in the first full month in June 2018. By comparison, it took approximately 16 months for the Australian Afterpay business to achieve $11m of underlying sales.[citation needed]

Over 400 retailer contracts signed to date and over 200 retailers are currently transacting on the platform including major millennial focused brands like Urban Outfitters (since 16 May 2018) and Revolve (since 9 July 2018).[citation needed]

Afterpay was the best performing stock on the ASX by total return in 2018 with a 1 year return of 400%.[4]

Awards[edit]

The company was named FinTech Organisation of the Year for two years in a row in 2017 and 2018.[5]

References[edit]

  1. ^ "ASX: APT". asx.com.au. ASX. June 2018.
  2. ^ Chau, David. "Afterpay's late fees make up 24pc of its income; ASIC recommends buy now, pay later law reform". ABC. Retrieved 10 September 2018.
  3. ^ McGowan, Michael. "Afterpay: buy-now pay-later scheme soars in popularity but experts sound warning". The Guardian. Retrieved 10 September 2018.
  4. ^ "Afterpay Touch". Market Index. Retrieved 2018-07-09.
  5. ^ Pash, Chris (2018-06-14). "Afterpay is Australia's FinTech Organisation of the Year for the second year in a row". Business Insider Australia. Retrieved 2018-07-09.

External links[edit]