The Afterpay Ltd (ASX: APT) share price will be one to watch on Wednesday following a late announcement by the payment company.
What did Afterpay announce?
After the market close on Tuesday, Afterpay provided investors with an update on the progress it has been making in the UK market.
According to the release, the company’s UK-based Clearpay business now has over 1 million active customers using its platform after one year in the country.
In addition to this, management revealed that its customer purchasing frequency in the UK is outpacing the United States, when compared to the same stage of lifecycle. At the end of the first year, its UK customers are transacting more than 8 times per year. This compares to six times at the same stage in the United States.
This makes Clearpay one of the fastest growing ecommerce payment companies in the European market.
In addition to this, there are more than 1,100 brands and retailers offering, or in the process of offering Clearpay to their customers. Recent additions include Elemis, Bare Minerals, and ISAWITFIRST. They join the likes of ASOS, Marks & Spencers, JD Sports, Urban Outfitters, and Boohoo on its platform.
Strong growth.
As with its ANZ and US business, Clearpay has been a particularly strong performer during the COVID-19 crisis.
Management notes that during the COVID-19 period, it has experienced a strong customer adoption rate in the UK.
In May 2020, Clearpay had more than 3 million app and site visits, and its Shop Directory contributed over 1.5 million lead referrals to its retail partners. This represents a 40% to 50% increase in the weekly run rate from January and February.
Afterpay co-founder, Nick Molnar, appeared to be pleased with the progress the company is making in the UK.
He commented: “The world and the industry are changing at a rapid pace, and during this challenging time consumers are looking for ways to pay using their own money – instead of turning to expensive loans with interest, fees or revolving debt.”
“We applaud our U.K. merchants who support the payment needs of British shoppers – especially as we head into a ‘new normal’ for retail,” he added.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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