Afterpay US customer base booms during COVID-19 pandemic

Afterpay US customer base booms during COVID-19 pandemic

Buy-now pay-later (BNPL) giant Afterpay (ASX: APT) has continued its successful run in the United States with a jump in new users during the COVID-19 pandemic.

The company announced today it has more than 5 million active shoppers in the US using the service at Afterpay merchant partners.

This means the company now has close to 9 million US customers, including more than one million new customers that joined during the COVID-19 period of the last ten weeks.

"These milestones have been achieved after launching in the US just two years ago making Afterpay one of the fastest growing e-commerce payment companies in the market," says Afterpay.

In the year to date through Q3 FY20 Afterpay says it processed $2.4 billion with its merchants, a 354 per cent increase over the same period in FY19.

In April 2020 the BNPL group says it witnessed 15 million app and site visits, with its US shop directory contributing nearly 10 million lead referrals to is retail partners that includes retailers like Birkenstock, American Eagle, Marc Jacobs Beauty, YSL Beauty, and Herschel.

"At a time in which e-commerce has become the primary way people are shopping, there is a growing interest and demand among consumers to pay for things they want and need over time using their own money instead of turning to expensive loans with interest, fees or revolving debt," says co-founder and US CEO of Afterpay Nick Molnar.

"We feel so grateful to partner with the merchant community to support their shoppers and help them attract more customers, as commerce and retail starts to rebound over the next several months."

When the COVID-19 pandemic began to hit the ASX in March Afterpay was one of many companies that saw its share price tumble.

At its lowest, Afterpay was trading at $8.90 per share, but a positive trading update in mid-April saw the company's fortunes bounce back.

Afterpay experienced another spike at the beginning of May on the news that Chinese tech giant Tencent became a substantial holder in the company.

Over the course of 23 March to today shares in Afterpay have risen by 395 per cent, with the company currently trading at $43.98 per share.

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