Afterpay adding 7,900 customers a day

Afterpay Touch says its underlying sales rose 143 per cent in the last 11 months – but its share price is subdued after it disclosed it is in talks with regulators regarding its compliance with anti-money-laundering and terrorism financing rules.

The buy-now, pay-later company said on Thursday it processed $4.7 billion in the 11 months to May 31, compared to the prior underlying period.

Afterpay now has 4.3 million active customers and has been adding 7,900 new customers a day since December 31.

It has partnered with 30,600 active merchants, up 32 per cent from the start of the year.

But Afterpay said it had appointed a leading professional services firm to conduct a review of its anti-money-laundering/counter-terrorism financing (AML/CTF) framework.

It added external identity verification to its systems last July but said it had been contacted by the Australian Transaction Reports and Analysis Centre (AUSTRAC), the regulator that tracks financial transactions.

“Although Afterpay has not identified any money laundering or terrorism financing activity via our systems to date, Afterpay is currently in dialogue with AUSTRAC regarding issues that AUSTRAC has raised regarding our AML/CTF compliance, the outcome of which is yet to be determined.”

Austrac has been contacted for comment and an Afterpay spokeswoman could not add anything to the release.

Afterpay said it supported new laws passed in April that give the Australian Securities & Investments Commission (ASIC) the power to regulate buy now, pay later companies.

In terms of its overseas expansion, Afterpay said that its US business it launched 13 months ago had generated $780 million for the 11 months to May 31, with 3,300 merchants active and another 1,100 in the process of signing up.

In the UK, Afterpay has completed a “soft test” under the Clearpay name and has 50 retailers signed up to its plaform.

AAP

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