Afterpay Touch Group Ltd [ASX:APT] focuses on applying its technology to facilitate a better experience between retail stores and consumers.
Founded in 2015, the company allows retailers to offer credit purchases to customers without requiring a traditional loan or any upfront fees or interest.
The share price is up 5.34% for the day.
What has caused the Afterpay share price jump?
Afterpay has been going from strength to strength ever since its introduction to the stock market.
Goldman Sachs could be the reason behind the rise. They have a $11.15 price target on the stock and while risk can be involved, the company has funds to play with.
Its success has come from the habits of millennials.
Instead of customers paying $200 upfront for an item, Afterpay allows them to split the payment into four fortnightly payments.
I know, it’s deceptively simple.
Afterpay’s share price hit a 52-week high of $10.49, a massive increase from when they entered the stock market at $3.03.
What next for Afterpay?
Afterpay seem to have an incredibly bright future.
There are currently around 1.8 million users of Afterpay and they have now expanded to the United States, where they hope to have the same level of success.
They have signed on with companies such as 7-Eleven and Optus, helping grow their reputation, and are in talks with retail giant Urban Outfitters in the US.
If Afterpay can continue to grow as they have, it’s a stock that all investors should keep an eye on.
Editor, Money Morning
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