A boom in US e-commerce growth and deals with major North American retailers has sent shares in buy-now pay-later (BNPL) platform Afterpay (ASX: APT) soaring this morning.
At the time of writing, APT is trading up more than 6 per cent following an announcement overnight the company had signed deals with some of the largest brands in the US.
Afterpay is now available to select app customers at merchants including Amazon, CVS, Dell, Kroger, Macy's Nike, Sephora, Target, Victoria's Secret, Walgreens and Yerti.
According to the BNPL company these merchants represent almost half of all US e-commerce value.
The announcement comes on the back of US e-commerce growth nearly tripling in the first three months of 2021 compared to a year ago as more customers shopped from home.
Online sales soared to a record-breaking 43.7 per cent in 2020 and grew 29 per cent in Q1 2021 the second-highest pandemic period increase behind the Q2 2020 peak.
"Over the past year, we all relied on online shopping for the things we needed during the pandemic. But as we celebrate the physical re-opening of stores, consumers still want the convenience and flexibility of buying with the click of a mouse as part of their 'new normal'," Afterpay general manager North America Zahir Khoja said.
"We are thrilled to continue to support our customers by allowing them to shop every day at their favourite brands with Afterpay for the things they need and want in their lives."
The update comes just over two months after the company confirmed it is exploring listing in the US, given the market is now the largest contributor to the BNPL business' bottom line.
The company says it is actively working with external advisors to explore options for a US listing, a region Afterpay expects will only continue to grow.
While APT will remain headquartered in Australia, the BNPL giant with a $37.75 billion market capitalisation wants to tap into investors with more of a global focus.
Shares in Afterpay are up 6.58 per cent to $130.99 per share at 11.39am AEST.
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