Afterpay enters its largest online deal to date with eBay Australia
Written on the 13 November 2019 by Matt Ogg
Within a week of Zip Co (ASX: Z1P) announcing its service would be available on Amazon, Afterpay Touch Group (ASX: APT) has reached an agreement with eBay that marks its largest online arrangement to date.
In a business update today highlighting a 23 per cent lift in underlying sales to $2.7 billion for the four months to 31 October, Afterpay reported its service would be offered on eBay Australia's marketplace.
The service is expected to go live on eBay in 2020.
The buy-now-pay-later (BNPL) behemoth noted eBay would be giving its 40,000 small and medium-sized businesses the ability to access Afterpay for their customers.
On his LinkedIn page, Afterpay co-founder and global chief revenue officer Nicholas Molnar says it felt "unbelievable" to be providing an update with a run-rate of $8.5 billion in total sales volume.
"Particularly, the way my life has taken a full circle whereby eBay taught me retail through my online jewellery business and now we have the opportunity to go live with eBay in 2020," he says.
"This is game changing for the 40,000 eBay sellers and I can't wait to watch the positive impact we can have on their businesses - as I would have loved this feature when I was a small business on eBay!"
The agreement adds to a growing list of major brands that have either recently integrated or are in the process of onboarding, including David Jones and Myer in Australia, Finish Line and Ultra in the US, and Marks & Spencer in the UK.
Including eBay Australia, Afterpay estimates these merchants represent addressable underlying sales well in excess of $10 billion.
Also in the online space Afterpay has also recently brought Agoda, Shein, My Deal, Appliances Online and Swarovski into the fold.
In its update the Melbourne-headquartered company highlighted its active customer numbers were up 32 per cent for the period at 6.1 million, along with a 22 per cent rise in the number of active merchants to 39,450.
Growth on a year-on-year basis was higher still at 110 per cent for underling revenue, 137 per cent for active customer numbers and 96 per cent for the number of active merchants.
In October alone Afterpay onboarded over 15,000 new customers per day in October, representing its largest customer acquisition month on record and accelerating from approximately 12,500 customers per day in July.
The group also announced its expected loss is currently in line with FY19 levels. APT shares were down 2.26 per cent to $28.53 at 10:30 AEDT.
Business News Australia
Author: Matt Ogg