Aussie fintech's golden child is now making waves in NZ
Australian fintech’s golden child expands into New Zealand.
Australian retail fintech Afterpay has gone international, expanding into New Zealand through a partnership with Trade Me.
"For calendar years 2015 and 2016, Afterpay remained solely focused on the Australian market and on establishing its service as the preferred buy now pay later solution, prior to embarking on its first international expansion," Nick Molnar, CEO of Afterpay, told AltFi.
"Given the growth of the business and operating foundation now present in Australia, Afterpay believes it is the right time to launch into the New Zealand market - for two keys reasons: [firstly] New Zealand-based customers of our Australian retailers are requesting the Afterpay service, [secondly] There is currently a lack of payment options in new Zealand."
Afterpay gives shoppers zero interest loans, which can be used to buy whatever they like in shops. Shoppers then pay back the loan in four equal installments every fortnight. Afterpay profits by charging retailers a small fraction of the sale.
One of the few fintechs listed on the Australian stock exchange, Afterpay has bagged a series of wins the past 12 months.
In 2016 it secured deals with major clothing and footwear retailers such as The Athlete’s Foot, Topshop and Billabong. In 2017, it won the Australian fintech of the year prize at the annual industry awards. Now it has become one of the few Australian fintechs to move into an overseas market.