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Afterpay share price shoots higher on Apple Pay and Google Pay updates

Payment Technology
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The Afterpay Ltd (ASX: APT) share price is rebounding strongly from yesterday’s weakness.

In morning trade the payments company’s shares are up 3% to $68.60.

Why is the Afterpay share price rebounding today?

Today’s gain appears to be in response to a couple of announcements the company made in respect to its U.S. operations this morning.

According to the first announcement, the company’s millions of U.S. customers can now use Apple Pay to make purchases through its buy now pay later platform in physical retail stores and online.

Beginning this month, select retail stores in the U.S. such as Forever21, Fresh, Skechers, and Solstice Sunglasses will begin offering Afterpay via Apple Pay.

This has the potential to be a key driver of growth for its U.S. business in the future. As of the end of the 2019 calendar year, Afterpay’s in-store offering represented approximately 24% of total ANZ underlying sales.

Co-founder and CEO, Nick Molnar, commented: “As we enter the second half of the year and retail re-emerges across the world, it’s critical we help our partners drive business growth, both online and offline.”

“As a proven solution for driving incremental sales and new customer growth, we are thrilled to introduce our new omni-channel solution to U.S retailers as they begin to open their doors and bring shoppers back to their physical stores,” he added.

What else did Afterpay announce?

In an accompanying announcement, Afterpay revealed that it won’t be neglecting Android phone users.

The company has also signed an agreement in the U.S. with Google Pay to offer its buy now pay later service to Android users.

Mr Molnar commented: “Afterpay and Google Pay give shoppers the ability to choose either physical or online shopping while still being able to budget their own money and avoid expensive loans, interest and fees – which has shown to attract new customers and drive more sales conversion for our retail partners. We are thrilled to partner with Google to make shopping and paying in-store convenient, secure and contactless.”

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