Afterpay doubles users

Loss up as buy-now-pay-later firm looks to grow

BUY-NOW-PAY-LATER operator Afterpay has recorded a more than doubling in customer numbers and their spending, but has also widened losses in its first half.

Afterpay had 7.3 million active customers at the end of the six months to December 31, which was a 134 per cent improvement.

Shoppers’ enthusiasm to use the phone-based app helped drive underlying spending of $4.8 billion globally – a 109 per cent gain from the same period last year.

However, the popularity of the technology could not prevent a $28.9 million loss in the six-month period.

That compares with a $22 million loss for the same period last year.

The company attributed costs of hiring more staff, marketing and other operating expenses for the weaker result.

It said this was all part of its plan to boost income and growth.

Afterpay’s most prominent app-based service has been winning over young who are increasingly with phone services than credit cards.

Other players in the growing market include Zip Pay, Ezypay and zipmoney.

Afterpay reported total income jumped 96 per cent to $220 million.

Its 3.1 million customers across Australia and New Zealand remained the biggest source of spending, accounting for $3.1 billion of the total. people, paying rather

It had 3.6 million US customers – 1 million of these having signed up in November and December with total spending of $1.4 billion.

Afterpay will launch its instore service in the US during the second half of the financial year, and expects sales to surpass those of Australia and New Zealand.

Chief executive Anthony Eisen (pictured) said growth in the US and UK was faster than in its home territory.

Mr Eisen said the company y was targeting reaching 9.5 mil- lion customers by the end of f the financial year.

While profitability would be e affected in the short term, the management expects higher profitability as each market t matures, he said.

It comes as a report says the e buy now, pay later companies are growing at a rate of 39 per cent annually in the UK.

The company did not declare a dividend.