Australian buy-now-pay-later company, Afterpay Ltd, recently announced its acquisition of Spain-based firm Pagantis, marking its expansion into the European market. As the COVID-19 pandemic boosts the popularity of online shopping, Afterpay has seen a surge in demand for its alternative credit services. Its platform appeals to young consumers who lack access to traditional credit cards or loans.

The news of the acquisition has had a positive impact on Afterpay’s share price, reaching an all-time high during early trading. The company’s Chief Executive, Anthony Eisen, expressed confidence in expanding globally, fueled by their strong momentum. Through the acquisition of Pagantis, Afterpay will gain the necessary regulatory licensing, resources, and infrastructure to launch its services in Southern Europe and beyond. They are already working with Pagantis and engaging with retailers, with plans to launch in the third quarter of 2021.

Afterpay’s success is evident in its recent doubling of its annual core earnings forecast, which propelled its position among Australia’s top 20 most valuable companies. Investors have also shown interest, with Mitsubishi UFJ Financial Group Inc acquiring a 5% stake and Tencent Holdings Ltd purchasing a 5% stake earlier this year.

The company is expected to report its full-year results on August 27th, providing further insights into its growth and financial performance. With the buy-now-pay-later industry thriving amidst changing consumer habits, Afterpay’s expansion into Europe positions it for further success and global expansion.

[Useful Links]
1. Afterpay Official Website
2. Pagantis Official Website