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Afterpay Touch Group Limited is pleased to announce a business update for the period ended 31 October 2019



Afterpay Touch Group Limited (ASX: APT) (“Afterpay” or the “Group“) is pleased to announce a business update for the period ended 31 October 2019.

Highlights and Group Performance



4 month period ended
31 October 2019

Compared to:
4 month period ended
31 October 2018

Compared to:
4 month period ended
30 June 2019

Underlying Sales

$2.7 billion



Active Customers1

(as at 31 October 2019)

6.1 million



Active Merchants1

(as at 31 October 2019)




  • Growth and performance continue across all geographies and channels with global underlying sales of $2.7 billion in the 4-months to 31 October 2019, a 110% increase compared to the previous corresponding period (pcp). Current annualised underlying sales is in excess of $8.5b.2
  • There were 6.1 million active customers globally at the end of October, a 137% increase on pcp
    • On average, Afterpay onboarded over 15,000 new customers per day in October, representing its largest customer acquisition month on record and accelerating from approximately 12,500 customers per day in July.
  • Purchasing frequency, loss rates and customer lifetime value are improving the longer that customers are on our platform:
    • In Australia and New Zealand, customers who joined Afterpay during FY15-17 are now purchasing, on average, approximately 22x per year. Newer cohorts are following a similar upward trend, with the FY18 and FY19 cohorts purchasing, on average, 14x and 7x per year respectively.
  • Nearly 40,000 merchants are active on the Afterpay platform, almost double the pcp, reflecting the onboarding of both higher margin SMB merchants and key new enterprise merchants.
  • A number of major brands have either recently integrated or are in the process of onboarding including eBay (AU), Ulta (US), Finish Line (US), Marks & Spencer (UK), David Jones (in-store AU), and Myer (in-store AU). Collectively, it is estimated that these merchants represent addressable underlying sales well in excess of $10 billion3.
  • Year to date, Group merchant revenue margin (unaudited) is in line with FY19 levels, supported by improving revenue margins in the US and UK.
  • Year to date, Group Gross Loss, Net Transaction Loss (NTL) and Net Transaction Margin (NTM) (all unaudited) remain in line with FY19 levels, notwithstanding higher underlying sales contribution from the newer, higher early stage loss markets of the US and UK.
  • The Afterpay platform continues to add value to our merchants with Afterpay’s shop directory contributing over 10 million lead referrals globally in October alone, representing the highest month of referrals ever.
  • Strategic agreement with Mastercard in Australia and New Zealand will support our mid-term growth.
  • $200 million private placement and proposed strategic partnership with leading US based technology investor, Coatue Management. Proceeds will be raised at $28.50, representing a 2.4% discount to the last closing share price and a 3.8% premium to the 5 day VWAP, and be targeted to global platform expansion opportunities beyond mid-term plan deliverables.
  • Progress made in further strengthening a majority independent board with the appointment of a new US based director, Mr Gary Briggs, from 1 January 2020.

ANZ Market Update

  • Growth continues in ANZ with underlying sales of $1.9bn in the 4-months to 31 October 2019.
  • In-store continues to be the key growth driver, representing 23% of total underlying sales in FY20 year to date, up from 18% in FY19. Afterpay in-store is now available at almost 29,000 shopfronts, up from 23,600 at the end of June 2019.
  • Over 3 million active customers in ANZ and over 33,000 merchants as at 31 October 2019.
  • Merchants that have recently gone live or signed with Afterpay include:

Dymocks (in-store)

TerryWhite Chemmart (in-store)

Agoda (online)

Swarovski (online)

Shein (online)

Myer (in-store)

Marks & Spencer (online)

My Deal (online)

David Jones (in-store)

Appliances Online

  • In a little over 12 months since launching health services, Afterpay is now being offered in over 2,500 practices in the dental and optical space nationally.
  • Afterpay has recently entered into a partnership with Bupa Dental, Australia’s largest corporate dental group, which will see Afterpay made available to the more than 500,000 patients they treat each year across more than 200 dental practices around Australia.
  • Loss performance has continued to trend positively on a year to date basis relative to FY19 levels.
  • Over 95% of GMV in ANZ is generated from returning customers.
  • Afterpay estimates that it is one of the largest lead referrers in ANZ, with well over 4 million referrals provided to merchants in the month of October.
  • Entered into a strategic partnership with Mastercard in the Australian market to help scale Afterpay’s business and deliver services to merchants with greater efficiency and flexibility. In addition, Afterpay will utilise Mastercard data and services and technology capabilities. Further information on this collaboration will be provided as products and services are introduced to the Australian market.

Partnership with eBay Australia

  • Afterpay is pleased to announce it has reached an agreement for our service to be offered on eBay Australia’s marketplace; expected to go live in the 2020 calendar year.
  • eBay Australia is the largest shopping site in the country with 11-million unique monthly visitors.
  • eBay Australia will be giving its 40,000 Australian SMBs the ability to access the Afterpay service for their eBay customers.
  • The partnership represents Afterpay Australia’s largest online arrangement to date which allows both companies to align on a mutual approach of adding value to merchants by helping them access new and repeat customers.

US Market Update

  • Strong growth continued in the US with underlying merchant sales reaching $0.7bn in the first 4-months to 31 October 2019. Current annualised underlying sales is in excess of $2.5 billion based on the month of October.
  • Customer uptake is increasing at a faster rate, with 2.6 million active customers at 31 October 2019, up 51% since 30 June 2019.
  • Recorded highest monthly customer acquisition in the US in October, with over 9,000 new customers acquired per day on average.
  • Year to date, Gross Loss experience has improved in the US relative to FY19 levels as our returning customer base increased. Merchant revenue margins are also ahead of FY19 levels on a year to date basis.
  • More than 9,000 active or currently integrating merchants as at 31 October 2019, including recently onboarded brands such as:




Finish Line                             


HAUS LABORATORIES                 

Outdoor Voices


Shiseido Brands

  • The Afterpay platform continues to add value to US merchants with the Company’s shop directory generating over 5 million retailer referrals in the month of October.

UK Market Update

  • Over $100m of underlying sales in the 4-months to 31 October 2019. Current annualised underlying sales is in excess of $0.4 billion based on October.
  • Over 400,000 active customers since launch in May 2019.
  • UK customer numbers remain higher than the US at the equivalent stage of lifecycle despite being a smaller market.
  • While still in its infancy, merchant revenue margins and loss performance has trended positively on a year to date basis.
  • Successful launch of the Clearpay app in October supporting meaningful lead generation with over 0.5 million referrals across the Clearpay website and app in October.
  • Partnership with UK-based multinational retailer Mark & Spencer (M&S) recently commenced. It is one of Afterpay’s largest merchant partnerships to date and is expected to contribute significantly to our UK performance over time.
  • Approximately 330 active or currently integrating merchants as at 31 October 2019 including recently onboarded brands such as:

Marks & Spencer

The Hut


Pro Bike Kit

Look Fantastic




Investment and proposed strategic partnership with Coatue Management (“Coatue”) to support continued international expansion

  • Afterpay today has entered into a subscription agreement for a A $200 million private placement with leading US based technology investor, Coatue.
  • Coatue will acquire new Afterpay shares at $28.50, representing a 2.4% discount to the last closing share price on Tuesday, 12 November of $29.19 per share, and representing a 3.8% premium to the 5 day VWAP4 up to and including Tuesday, 12 November. Completion of the placement is planned for later this month.
  • The shares issued to Coatue will be subject to a 12 month escrow arrangement reflecting the strategic nature of the investment.
  • Investment proceeds will be targeted to global platform expansion opportunities beyond mid- term plan deliverables.
  • In connection with the investment, a non-binding term sheet has been agreed for a strategic partnership where Coatue will leverage its data science expertise to support Afterpay in its development of retail data analytics and future data driven products. Subject to formal agreement, Coatue and Afterpay will collaborate on tools and capabilities, empowering Afterpay to pursue its goal of being the world’s most loved way to pay.
  • Coatue, founded by Philippe Laffont and Thomas Laffont in 1999, is one of the largest dedicated technology funds in the world, having invested in a number of global technology platforms. Coatue currently manages approximately US$17 billion in assets on behalf of individuals, endowments, foundations, and other institutional investors.


  • We have made progress in our commitment to enhance the Company’s Board with the appointment of a new independent Director.
  • Mr Gary Briggs will be joining the Company as a Non-Executive Director from 1 January 2020.
    • Mr Briggs is one of the most experienced marketing leaders in the digital sector having worked in a number of senior executive positions including, most recently, Chief Marketing Officer at Facebook from 2013-2018. Prior to Facebook, Mr. Briggs led marketing at industry leading technology companies including Motorola Mobility, Google, eBay and PayPal. He is also currently a board member of Etsy and Petco.
  • Our global board search for additional Directors remains ongoing, and we look forward to providing further updates at the relevant time.

Regulatory Update (Australia)

  • We welcome the opportunity to engage with the RBA in relation to surcharging, as part of its broad based, periodic review of the payments industry next year. It is important to note that Afterpay provides a far more comprehensive service to retailers than simply being a payment system.
  • We welcome comments from the Government that they are supportive of new technologies bringing competition to the marketplace and the establishment of a Senate Select Committee charged with better understanding the tech sector and how it can be better supported by regulators and policy makers.
  • Afterpay continues its support for a Code of Practice for the ‘buy now, pay later’ industry.
  • External auditor Mr Neil Jeans of Initialism is due to deliver a final independent audit report later this month. The Company remains committed to ensuring its AML/CTF compliance is robust.


  • Afterpay was honoured to be included in the global 2019 Fintech 100, recently compiled by KPMG and H2 Ventures.


SOURCE Afterpay


InfraRisk Expands Auto Financing Cooperation with Toyota Finance, Taurus Motor Finance




InfraRisk Pty Ltd. (InfraRisk), a leading supplier of credit management solutions in Australia, today announced it has expanded cooperation in auto financing with Toyota Financial Services to Germany and Austria to facilitate its credit process when lending to dealerships and large fleet customers.

Toyota Financial Services is a wholly owned subsidiary of the world’s largest carmaker Toyota Motor Corp, specializing in offering a comprehensive financial services lineup that caters to customers’ diverse needs while strengthening the core auto sales finance operation.

Nicholas Davies, founder and CEO of InfraRisk, said, “These two new European deployments complement existing ones in Europe and Australia demonstrating our platform’s ability to operate across multiple geographies catering to a range of country specific factors including policies and languages, with modularity being the key architectural design.”

InfraRisk has been in partnership with the car loan provider since 2016, offering them a fully featured credit management platform – Credit Value Maximiser, or CVX, to Toyota’s broad base of customers.

The modularized tool is built around key origination functionalities, from profile to pricing, with each module connecting via defined APIs. By harnessing the power of big data analytics, cloud computing and artificial intelligence, InfraRisk’s auto financing solution will enable a more efficient and effective, as well as regulatory compliant credit process.

Meanwhile, InfraRisk announced today a new partnership with Taurus Motor Finance, a start-up car loans provider based in Australia with a digital, automated and real-time credit assessment and approval process. The lender is implementing InfraRisk’s cloud-based and intelligent CVX platform to facilitate its commercial lending business as it looks to scale up operations.

“InfraRisk’s deep experience in the auto finance sector along with the system readiness to manage the capture of industry specific data fields has grown us into a leading provider of auto finance SaaS solutions,” said Victor Li, head of Pintec International Business. “We will continue to invest in the ongoing research and development with committed efforts and build the platform into a smarter and more advanced tool catering to particular ecosystems.”

InfraRisk is a wholly owned subsidiary of Pintec Technology Holdings Limited (“Pintec”, Nasdaq: PT), a leading fintech solutions provider that specializes in intelligent retail finance covering point-of-sale installment loans, personal loans, SME loans, corporate and commercial segments, wealth management and insurance services.


SOURCE InfraRisk

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Montreal Fintech FlexPay Raises $6M from Impression Ventures and BMO Capital Partners




FlexPay—which uses AI and machine-learning to help merchants recover lost revenues from declined transactions—is proud to announce they raised $6 million dollars, led by Impression Ventures, with participation from BMO Capital Partners, Anges Québec and strategic partners.

Credit card issuers report that 24% of recurring credit card transactions are falsely declined, costing online and telephone merchants $300 billion in lost sales and customers in the US alone. A false decline is a transaction that should have been approved, but wasn’t, for reasons out of the customers and merchants control. As the economy continues to shift to online and subscription-based revenue, this problem for customers and merchants is only getting bigger.

Using AI and machine-learning, FlexPay analyzes billions of transaction records to reverse-engineer exactly why risk-mitigation systems are falsely declining transactions. FlexPay then uses this real-time data to optimize credit card recovery and get valid transactions approved.

“Before learning about FlexPay, we didn’t know decline-salvage firms existed, to be honest. When we learned FlexPay’s fees are only charged on additional recovered customers, it was an easy decision for us at Masivo,” explains President Noam Egosi of Masivo Media. Following FlexPay’s integration, Masivo’s salvage rate rose from 10.0% to a staggering 42.4% average since March 2019, representing a 324% performance improvement. As a subscription business, this notable spike in recovery has also produced a 12% jump in precious LTV (Lifetime Value), and increased Masivo’s bottom-line profitability by 50%. “I tell everybody that will listen to us, to use FlexPay,” Egosi enthusiastically beams. “We’re big fans.”

“2019 was a year of significant in-roads,” reflects Darryl Hicks, CEO of FlexPay. “We surpassed the 2 million declines-processed mark and multiplied our integration points 8-fold, giving us access to a pool of 4 billion dollars in annual declines, 40,000 merchants and 80 million end-customers. The next logical step was to invite venture partners to join us and add their capital and expertise to accelerate us to help billions of end-customers get their transactions approved.”

Impression Ventures, based in Toronto and Montreal, led the round, marking their first investment in Montreal. “We believe FlexPay to be the best-in-class solution in a massively underserved market,” reflects Maor Amar, Managing Partner, “The company’s AI powered systems provide a solution to the large and rapidly growing problem of false credit card declines. FlexPay’s management team has an impressive entrepreneurial track record, in depth knowledge of this market and the passion and energy required to succeed. We are thrilled to join them on this journey.”

BMO Capital Partners added: “we are happy to support a talented team, committed to solving a real problem in the e-commerce space with state-of-the-art technology.”

“We thank our advisors, investors and board members for their ongoing help with FlexPay’s vision and traction,” adds CFO Laurent Binda. “Securing this specialized group of institutional investors gives us the capital, experience and network we need to accelerate our progress in solving falsely declined credit card transactions.”



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35 Innovative Products, Services and Organizations Honoured International Innovation Awards 2019 in Singapore



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Enterprise Asia announced the winners of the International Innovation Awards 2019 in Singapore. Thirty five products, services and organizations are named as award winners from over 160 submissions.

Among the notable recipients of the InnoCube are AIA Malaysia, Taiwan’s HIWIN Technologies Corp., Singapore’s Olam International Ltd., Philippines’ Unilever, Indonesia’s PT MRT Jakarta, and United Arab Emirates’ Roads and Transport Authority.

“There are not conventional ‘innovations’. When we set out to identify winners of the IIA, our goal is to present a broad spectrum of innovations that could spur greater innovation in the recipients’ respective countries and industries. Just as innovation itself is continuously self-redefining, the awards are meant to promote continuity in innovation,” said Dato’ William Ng, president of Enterprise Asia.

“Innovation is moving faster than at any other point in history. Organizations cannot afford to rely on current practices and hope that they will work in the future. Organizations that fail to innovate are setting themselves up for failure,” Ng added.

“The award recipients also receive the InnoMark, the global certification for innovation. The InnoMark, like the International Innovation Awards, adopts our proprietary 8-Dimension of Innovation – which includes areas such as defendability and enforceability, impact and measurability as well as ideation and creativity. This will not only help define the best practice in innovation but provide a platform through which companies could showcase the results of their innovation,” shared Ng.

Organized annually by Enterprise Asia, the International Innovation Awards is among the most coveted global awards for innovation, and aims to recognize best innovations in the categories of Product, Service & Solution, and Organization & Culture. This year’s judging panel include Martin Daffner, founder of Innobrix, Professor Nadia Thalmann of Nanyang Technological University, Professor Natcha Thawesaengskulthai of Chulalongkorn UniversityMakoto Shibata of FINOLAB, The FinTech Center of Tokyo and Anna Simpson of Flux Compass.

In conjunction with International Innovation Awards 2019, Enterprise Asia also organized the International Innovation Summit 2019, themed “Innovation Trailblazers: Creating for Disruption”, the summit convened over 400 innovation experts, industry leaders and policy makers over three days. Following two successful editions in Shanghai and Macau, the Summit is held in Singapore and supported by the Singapore government this year.

At the opening of the Summit, organizing chairman and former minister of human resources of Malaysia, Dr. Fong Chan Onn said that the Asian economy need to reduce its reliance on foreign technology and develop its own in order to insulate its economies against global events such as the on-going US-China trade spat.

According to Dr. Fong, “Companies wedded to the old business model lose ground, and some are pushed out of business. Challengers that embrace innovation gain advantage and will take a dominant position in the market. The goal of this year’s International Innovation Summit is not only to discuss what to expect from the future of disruption in innovation, but also in defining the innovation culture that we must adopt for our organizations to compete in this revolution.”

“More importantly, governments must urgently work with the private sector to define the innovation agenda for their respective economy, and to work with other countries for a regional framework to advance the culture of innovation in each country,” Dr. Fong said.

This year’s keynote speakers include Koert Breebaart, vice president of SAP Asia; Ken Ding, head of product innovation of Samsung Electronics; Yat Siu, founder and CEO of Outblaze and Animoca Brands; Ajay Mohan of Intel Corporation and Jing Jang of Haier Group Corporation.

The International Innovation Awards 2019 is supported by Singapore Tourism Board through Singapore Exhibition & Convention Bureau, Eastern European Chamber of Commerce (Singapore), The Coordinating Secretariat for Science, Technology and Innovation (COSTI) under the Ministry of Science, Technology and Research, Sri Lanka, Malaysian Investment Development Authority (MIDA), Ministry of Energy, Science, Technology, Environment & Climate Change (MESTECC), Malaysia, Malaysian Global Innovation & Creativity Centre (MaGIC), National Institute of Entrepreneurship and Innovation (NIEI), Royal of Cambodia, Singapore Malay Chamber of Commerce & Industry (SMCCI) and Singapore-Thai Chamber of Commerce; Singapore Airlines as official airlines; Resorts World Sentosa as official venue partner; PR Newswire as news release distribution partner; and BusinessWorld, Commercial Times, Kumparan, SME Magazine, Techsauce, The Nation and Tuoi Tre News as the official media partners.

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