Why Afterpay’s Share Price Spikes Up 3.79%

By ,

The Afterpay Touch Group Ltd [ASX:APT] share price shot up by nearly 4% this morning and has now dropped off slightly, sitting 2.88% up at time of writing.

This continues a positive trend for the fintech giant, its share price having climbed yesterday too on the back of general market enthusiasm for the ‘buy now, pay later’ concept.

As a result, fellow players in this game are also skyrocketing, including Splitit [ASX:SPT] and Zip Co Ltd [ASX:Z1P], both up 7.87% and 10.69% at time of writing, respectively.

Does Afterpay have what it takes to compete with up and coming rivals?

Battle of the ‘buy now, pay later’ stocks

It’s been reported that a higher percentage of Afterpay’s earnings these days comes from repeat customers instead of new ones.

While it’s great that Afterpay has a loyal and engaged customer base, retailers might look to more acquisition-focused companies for faster growth.

If Zip and Splitit manage to execute this, then Afterpay could be left in the dust.

Then again, Afterpay is the father of these payment solutions giants and the most recognisable brand (in my opinion).

‘Just Afterpay it’, is becoming akin to ‘just Google it’. Splitit and Zip just don’t seem to have the saturation in the ecommerce lexicon just yet.

But that could be about to change…

Are Afterpay shares worth buying?

There’s a lot of excitement in this space, no doubt.

Afterpay could zoom to even greater heights, however there’s no denying it has a lot of strong competition to contend with. And I haven’t even mentioned Apple Pay or other payment solution providers.

It’s a volatile space, but as a rule, the trend for more diverse and accommodating payment types is increasing. This, I believe, means the stock is in the right space for growth.

If Afterpay can make it big in the UK and US before Zip and Splitit get a word in, then the sky could be the limit.

Then again, you could just invest in all three…

It will be a rough battle for sure, but no less entertaining (and hopefully profitable!).

Regards

Ryan Dinse

For Money Morning

PS: Tired of all the ups and downs and want some sure-fire winners for your portfolio? Check out this FREE report including the five top dividend stocks on the ASX today. Click here to download.

About Ryan Dinse

Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately…

Splitit, Openpay, and Laybuy Share Prices all Spike Higher on Quarterly Results

After soaring in the pandemic-led tech boom, many of the tiny fintech stocks in this space have capitulated. A reflection of the competitive and challenging market it’s now become.

BNPL Laybuy Shares Fall on Revenue Downgrade (ASX:LBY)

Struggling ASX BNPL stock Laybuy expects its net transaction margin to be negative in the fourth quarter.

Zip to Buy Sezzle in BNPL Consolidation Deal [ASX:Z1P]

Meta-description: Zip Co Ltd [ASX:Z1P] is set to acquire fellow BNPL stock Sezzle Inc [ASX:SZL] in an all-scrip deal valuing Sezzle at $491 million.

Zip and Sezzle Talks: Is 2022 For BNPL Consolidation? (ASX:Z1P)

Zip Co [ASX:Z1P] and Sezzle [ASX:SZL] today confirmed they are discussing a potential acquisition, as the depressed BNPL sector considers consolidation.

Zip Shares Flat Despite Record December Transaction Volume (ASX:Z1P)

Zip Co [ASX:Z1P] shares were flat this morning after the buy now pay later (BNPL) stock released its Q2 results ending 31 December 2021.

Humm Share Price Soar on Takeover Proposals amid BNPL Rout (ASX:HUM)

Humm Group [ASX:HUM] share price is up over 20% as the buy now, pay later (BNPL) stock flags potential takeover bids.