PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Online Shopping During Shutdown Boosts Afterpay’s Installment Payment Business

By Raymond Pucci
June 19, 2020
in Analysts Coverage, Credit, Merchant
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
BNPL: The Times They Are a-Changin' for Credit Cards

BNPL: The Times They Are a-Changin' for Credit Cards

Installment, or alternative lending, has been on a major growth path for U.S. consumers and the recent stay-at-home lifestyle has given it a hockey stick trajectory. Several companies have benefited from this trend including Affirm, Klarna, and Splitit. Australian lender Afterpay has established a U.S. beachhead and its results have been eye-popping.

Alternative lending has become a crowded field and other e-commerce ecosystem players are getting into the act. Consumers will benefit with another payment option, and merchants also win by having multiple installment lenders to offer competitive fees and services.

The following Wall Street Journal article, excerpted below, reports more on the topic:

“Buy Now, Pay Later,” has been the recipe for success for Australian fintech company Afterpay. Investors plunking down for its stock now, however, might find themselves with buyer’s remorse later.

Afterpay’s Australia-listed stock has nearly doubled this year, despite a sharp selloff earlier in the year because of the coronavirus pandemic. Its shares have been on a tear recently—up 560% from their March lows. The company works with merchants to enable shoppers to pay for their purchases in installments—without fees or interest—over a few weeks. Afterpay makes money by charging merchants a fee while taking on the credit risks of the customers. Investors probably flocked into the stock as it is one of the few technology stocks listed in Australia.

Visits to Afterpay websites continued to grow in May, according to Citi, though that may slow this month as social-distancing measures ease. The world’s largest consumer market is clearly the dream arena for Afterpay, and it already had more active customers in the U.S. than in Australia and New Zealand as of March.

Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: AffirmAfterpayAlternative LendingInstallment LoanKlarnaSplitit

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result