Afterpay Ltd [ASX:APT] is one of Australia’s pioneering fintech stocks that makes up the lucrative WAAAX stocks. Founded in 2015 and listed on the ASX in 2017, the Afterpay share price has been unrelenting and now ranks in the top 20 companies on the index in terms of market cap.
Afterpay provides an innovative buy now, pay later platform that allows its users to pay for purchased goods over four equal instalments without paying interest.
In its five-year history, Afterpay has gone from start-up to an $18 billion organisation that has operations in Australia and New Zealand, the US, and the UK. APT reports that it now exceeds one million customers in the UK and over five million in the US.
Globally, Afterpay boasts over 43,000 active merchants using its payment service. The company’s rise to prominence comes at a turbulent time for the financial industry and has turned the traditional forms of finance and credit on its head.
While the Afterpay share price has skyrocketed since its ASX debut, the company is still in the early stages of its global expansion. As such, the company is spending to accelerate growth and investors should be prepared for potential short-term losses as it tries to deliver profits in the medium term.