Afterpay (ASX:APT) share price edges higher amid increasingly crowded BNPL space

The Afterpay share price hasn't been visibly affected by Suncorp's new buy now, pay later offering.

| More on:
three happy shoppers pose together with their shopping bags thanks on a street.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Afterpay Ltd (ASX: APT) share price is in the green today despite news another ASX-listed bank is launching its own buy now, pay later service.

Afterpay is facing yet another competitor after Suncorp Group Ltd (ASX: SUN) announced it is breaking into the BNPL sphere.

Right now, the Afterpay share price is $131.97, 0.96% higher than its previous close.

Let's take a look at the news of Afterpay's latest rival.  

Afterpay share price up despite new competition

The Afterpay share price is performing well today despite the news Suncorp will be launching a BNPL service.

Suncorp announced its interest-free BNPL offering, PayLater, today.

PayLater will be accepted anywhere shoppers can use Visa, giving consumers the option to use the BNPL service on purchases from more than 70 million merchants.

PayLater will follow Afterpay's tried and tested formula of splitting a purchase into 4 instalments.

Additionally, Suncorp will be providing PayLater users with a yellow Suncorp bank card. By using the yellow card they can access the BNPL service in store and online.

Perhaps protecting the Afterpay share price today is the fact that to use PayLater one must be a customer of Suncorp Bank.

Further, unlike Afterpay, PayLater requires customers to pass a credit check.

Suncorp Group CEO Clive van Horen commented that PayLater removes the need to download separate apps. He also seemingly noted it will charge merchants less – or no – fees.

PayLater will charge users a $10 fee if they miss a payment by more than 2 days. The service is capped at $1,000 worth of purchases and has a $50 minimum spend.

For comparison, Afterpay charges users a $10 fee for missed payments and a $7 fee if the missed payment isn't made after 7 days. However, it has no minimum spend. Additionally, the amount a user can purchase through Afterpay increases if they use the BNPL service often and responsibly.

All eyes might be on the Afterpay share price when Suncorp launches PayLater in November.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Visa. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on BNPL shares

A woman sits back and enjoys the view from a paraglider, indicating share price lifts for ASX travel and adventure shares
BNPL shares

Up 71% in 3 weeks, have Zip shares topped out?

Despite the stellar run higher, Zip shares are still trading at a fraction of their February 2021 highs.

Read more »

A woman sits on a chair smiling as she shops online.
BNPL shares

Why is the Zip share price the best-performing ASX 300 stock so far this year?

The best-performing ASX 300 stock of 2024 so far is an unlikely hero.

Read more »

A happy girl in a yellow playsuit with a zip gives the thumbs up
Share Gainers

If I'd put $5,000 into Zip shares on 9 October, here's what I'd have now!

The stars have been aligning for Zip shares.

Read more »

woman using affirm to pay
BNPL shares

Up 288% in 6 months, Zip share price tipped for more outsized gains

Zip shares have rocketed 288% in just six months.

Read more »

A businessman stacks building blocks.
BNPL shares

Up 93% since October, why are Block shares marching ahead again on Friday?

ASX 200 investors have been snapping up Block shares.

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
BNPL shares

Zip share price up 58% in 7 trading days! What's going on?

This BNPL provider has been on fire recently. But why?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
BNPL shares

Shares sold: Why Zip is under fire from its own shareholders

Some Zip investors had their shares sold without their knowledge.

Read more »

Sad woman with her hand on her head and holding a credit card.
BNPL shares

Zip share price tumbles 9% despite explosive first-half growth

Zip had a strong half and delivered a big improvement in key metrics.

Read more »