Afterpay (ASX:APT) has entered into an agreement with global ecommerce platform, BigCommerce, to integrate its platform into its core system.
Afterpay facilitates commerce between retail merchants and their end-customers by offering a ‘buy now, receive now, pay later’ service.
Customers can pay for their purchases over four equal fortnightly interest-free instalments.
BigCommerce is a global ecommerce platform with over 5,000 active Australian online merchants and over 100,000 active online merchants globally.
The company will integrate Afterpay into their core system which will allow BigCommerce affiliated online retailers to introduce the Afterpay service with minimal to no technical development work.
Afterpay now has over 3,100 retailers which is up from 2,600 in mid-February, with the new agreement expected to further drive growth.
The company continues to receive large numbers of reverse inbound enquiries from retailers requesting to integrate with the Afterpay platform.
Afterpay is rapidly increasing its presence in the small and medium business (SMB) merchant arena and partnerships like BigCommerce are an important component of its growth strategy.
An increasing mix of SMB merchants within the Afterpay portfolio is important from both an overall market penetration perspective as well as enhancing Afterpay’s revenue margins.
Afterpay’s share price has increased by 80% over the past one year, last trading at $2.25.
The company had a cash balance of circa $31 million as at 31 December 2016.