Despite the global economic slow-down, the shift to online spending and move from traditional forms of credit have boosted Afterpay’s position domestically and internationally.
Afterpay announced today that it had doubled its revenue to $519.2 million. This is a 97 per cent increase from the 2019 financial year.
Net losses are also down to $22.9 million from the previous financial year’s $43.8 million loss.
Afterpay’s number of active customers has also increased by 116 per cent to 9.9 million. On average, 17.3 thousand new customers were added onto the Afterpay platform per day during the 2020 financial year.
Moreover, Afterpay has vastly improved its global market position.
Existing global strategic partnerships with Visa and Mastercard have been accelerating merchant integration.
In North America, Afterpay’s underlying sales grew by 330 per cent, despite only going live in Canada in August 2020. In the UK and Europe, an additional 450 merchants were added to Afterpay’s platform.
Additionally, Afterpay accelerated its international expansion by announcing a partnership with Worldpay from FIS. This has bolstered Afterpay’s expansion into global payment processing and acceptance.
Phil Pomford, General Manager for Global eCommerce APAC at Worldpay, welcomed this partnership.
“Worldpay from FIS is excited to partner with Afterpay for global payments processing and acceptance. The partnership will see Afterpay take advantage of our global scale to help drive their international expansion plans.”
Mr Pomford also noted the aggressive growth of buy now, pay later in Australian eCommerce.
“According to our 2020 Global Payments report, Buy Now Pay Later is the fastest growing online payment method in Australia and will account for almost 20 per cent of eCommerce payments by 2023.
“Globally, our merchant solutions business is seeing an increasing popularity among consumers for buy now pay later payment methods, and we have seen year-on-year Buy Now Pay Later transaction volumes increase by 102.3 per cent, and turnover 129.3 per cent, globally.”
Buy now, pay later products also show no signs of slowing down in the future.
The FIS 2020 Global Payments Report found that nearly 2 million Australians used a buy now, pay later product such as Afterpay in 2019. This is roughly 1 in 10 Australian consumers.
The Report also found that buy now, pay later grew from 3 per cent of all eCommerce transitions in 2018 to 8 per cent in 2019.
It predicts that by 2023, Australia’s eCommerce market will be worth $US 47 bn.