Not only is it popular down under, but it has a presence in other countries too. Investing in it is a good move. We talked about how you can buy and sell its stocks below.
Where to Buy Afterpay Shares?
Can you only trade them through online brokers? Yes. However, the number of brokers is so immense that you’ll always find someone new to work with.
The majority are accessible on various platforms. This includes iOS, Android, iPad OS, macOS, Windows, and Linux.
The Best Broker for Afterpay Shares
eToro Disclaimer: AFSL 491139. High risk to capital.
Afterpay is an Australian fintech company that has a presence in Canada, the United States, the United Kingdom, and New Zealand. What’s notable about it is that you don’t have to pay interest. Of course, there’s a catch to this. If you don’t pay back every two weeks, you’ll have to pay late fees, which are pretty hefty.
The buy now pay later scheme has become very popular as people can get hold of luxury goods immediately.
The service was founded in 2015 by Nicholas Molnar and Anthony Eisen, who are still in charge. Companies run by their founders tend to be the most successful.
Although it has not been around for a while, Afterpay has achieved a lot. In 2017, it merged with Touchcorp, one of its technology suppliers. The two merged to form the Afterpay Touch Group. In 2018, it was funded by Matrix Partners, which is a venture capital fund.
It was founded to help it break into the US market – A$19.4 million was put into the venture. In mid-2018, the move took place and it was successful. Afterpay began working with leading retail stores in America, such as Anthropologie, Urban Outfitters, and Free People.
The company then began a partnership with Visa Inc. And by August 2019, it had over 2 million active users from the US. You can currently use it with over 6000 retailers in the country. By the end of 2020, the group stated that it had over 5 million active users from the States.
What about in Australia? There are 3.1 million users from Australia and New Zealand (February 2020) and 0.6 million from the United Kingdom.
The site’s most popular demographic is millennials. As an investor, this is what you want to hear. Afterpay will keep making money as millennials are known for their impulse buying.
Its services are easy to access as it’s available on all popular platforms. This includes IOS, Windows, and Android.
How to buy Afterpay Shares?
Its shares are available on the Australian Securities Exchange. To buy and sell the stocks, you need to work with a platform that is connected to the ASX, who are called online brokers.
You need to work with someone who’s authorized. This means that your cash would be safe, likely in a separate bank account. There are a plethora of bodies that authorize brokers. As an Australian, you need one that is verified by the Australian Securities and Investment Commission.
Most brokers that work in Australia also let users from New Zealand access them. You’ll need a name that is authorized by the New Zealand equivalent of ASIIC.
When choosing a site, you not only need to pick one that is authorized but offers good resources. You’re likely not an expert trader. Buying and selling stocks might intimidate you, but with expert guides, you’ll quickly learn the ropes.
Of course, you might want to work with a name that alerts users to market trends. You’ll know when it’s the right time to invest.
Let’s say you found a broker that you’re interested in. Here’s what you need to do:
- Create an account. Creating a brokerage account can take a couple of minutes, so be patient. You’ll need to include your details. This would include bank details as well as proof of identity and where you live.
- Make a deposit. A lot of traders don’t let you invest in assets unless you fill your account with a minimum amount. You can do this through bank transfer, credit and debit cards, as well as e-wallets.
- Find stocks. If the broker is connected to the ASX, it’ll have Afterpay shares. However, you might not find the company unless you type its ticker symbol – the giant is traded as APT.
- Make a move. Are you going to trade now or later? Decide this depending on how the market is doing. If you buy shares now, it’ll be a market order. Putting it off would be a limit order.
- Now you watch and wait. You need to monitor how Afterpay does, as you need to know if you made a profitable investment or not.
Why Buy Afterpay Shares?
Let’s dive into why you should invest in the company.
A Global Reach
The payment service has taken over the world. The fact that it hasn’t been around for very long but has a massive reach is impressive.
The company has proved that it can easily obtain funds to infiltrate markets. Just take a look at how it broke into the US.
The Perfect Customer Base
Its user base is mostly millennials. They’re known for their impulse buying, so there will be plenty of cash to be made. The site’s services are very tempting, as interest is not charged. That being said, late payment fees can be expensive. Considering how millennials don’t make a lot of cash, they may skip payments and have to pay the late fees.
Increase in Growth
The brand has acquired several names throughout the years. In that time, it has grown as well. By the third quarter of 2020, sales from the US alone were up by 263%, generating USD 2.6 billion.
By the end of March 2020, the number of active merchants went from 27,300 to 48,000. This was a whopping 78% increase.
Financial technology is a name to watch. However, it has many competitors. They’re all just as popular, and we talked about three of the best.
Klarna is not an Australian company, but you can still buy its stocks if the broker you’re working with offers global shares. It is Swedish bank that lets you buy goods and pay later. It’s pretty successful. In 2019, the company made USD 35 billion from sales.
It commands a major share in the Swedish market. In 2011, 40% of all sales made in the country were via the service.
You don’t have to worry about the company losing its popularity. It assumes stores’ claims to payments, as well as the sums customers have to pay, which eliminates the financial risk.
It has a major global reach as well. You can use its services in the following countries: Australia, Poland, the US, UK, Italy, Spain, Switzerland, Germany, Austria, Sweden and other European countries. Considering that it is so big, it shouldn’t surprise you that over 3000 employees are part of its brand.
The giant was founded in 2005. Throughout the years, it has been very successful. Klarna increased its revenue by a whopping 80% in 2010 – it reached USD 54 million. The Telegraph named it as a leading name among Europe’s top 100 tech companies.
Klarna soon became the leading financial technology on the continent. It poured USD 460 million to expand its presence in the US. It partnered with leading names like the Dragoneer Investment Group, the Merian Chrysalis Investment Company, and even the Commonwealth Bank of Australia.
In 2020, Ant Financial – the affiliate of retail giant Alibaba invested in Klarna to propel its growth.
So, how many users does it have? According to Air now, 460,000 people use its services each month.
Like Afterpay, Zipco is an Australian name. You can trade it on the ASX as Z1P. It’s available in New Zealand as well. It was founded in 2013, with its headquarters in Sydney, Australia.
Zipco is a major competitor of Afterpay, and it boasts over 2 million active users in Australia. It works with around 24,500 retailers.
Just like its counterpart, its founders are still in charge – they are Larry Diamond and Peter Gray.
Throughout the years it has been around, Zip has made many moves. It acquired PocketBook in 2016 – one of its and Afterpay’s biggest competitors.
The company aims to expand globally. It bought the remaining shares in the New York-based pay later-service, QuadPay for $430 million.
Sezzle is not an Australian brand. It is American in origin. However, you can trade it on the ASX – it’s as freely available as SZL and entered the Australian market this year. It’s been giving Afterpay a run for its money. But the company has stated that it’s not planning to take its place.
The platform lets you buy now and pay later. Payments are made in installments and you don’t have to pay interest. By the end of 2020, Sezzle states that it had 2 million active users. It was working with 25,000 merchants as well.
It has a presence in the US, as well. But it’s not as massive as Afterpay or Klarna. Currently, 226,000 users are available from the States monthly.
It was founded in 2016 by Charlie Youakim who is still in charge of its operations.
In April 2019, the service raised $5.7 million and extended its reach to Canada. It’s listed on the ASX that year too, raising USD 30 million, selling a share for A$1.22 a share.
Unlike Afterpay, it is planning a launch in South Asia. This is a market that not many of its rivals are targeting. It would be a smart move, though, as it could dominate the region. Sezzle’s team is currently testing its services in India, and a launch is planned for later in 2021.
Should You Buy Afterpay Shares?
Considering the above points, investing in Afterpay stocks is a good move. The payment service a major name in the financial technologies industry. It’s known as the largest name to work with in Australia. It has not been around for very long yet has managed to infiltrate multiple markets.
That being said, Klarna seems like the better choice. It’s not available on the Australian Securities Exchange. However, you can still buy and sell its shares if the broker you’re working with lets you invest in global shares.
Afterpay’s rival is smarter as it has a larger global presence. It has quite a large pool of users in the US and is capable of getting large funding to keep expanding. It’s known as the largest Financial Technology in Europe and is one of the five “unicorns” of Sweden – some of the others being Spotify and Skype.
Klarna has won many awards as well. The fact that The Telegraph crowned it as one of the most influential tech start-ups so young in its career is something to note.
Compared to its rivals, Afterpay beats them squarely. It’s overall a safe bet as the retail industry is not going anywhere anytime soon. The majority of its users are also millennials who are known for their impulse buying. So the platform will certainly continue to make cash.
The COVID-19 pandemic has caused several countries to go into lock down. With most people at home, impulse buying is on the rise. This explains how well the service has done this year. Unfortunately, lockdowns will not go away shortly. But this is good news for the company as online sales will only keep getting increasing.
The brand is certainly a giant in the industry. It’s not only a major name in Australia, but it has a presence worldwide. To buy and sell its stocks, you’ll have to work with a broker connected to the ASX. Make sure the one you’re interested in has been authorized. This way, you can ensure that your cash doesn’t fall into the wrong hands.