APT +6.18%: BNPL stocks generally rallied today, however Afterpay was the standout after announcing it would launch a virtual card to ‘select customers’ in the US. The move follows a successful trial in NZ, as well as coming after a number of peers in the space have a similar offering (such as Quadpay which is owned by ZIP). Essentially, it allows users to use the BNPL product at non-aligned merchants, providing a nice sugar hit to volumes into the end of the quarter. From Shaw & Partners analyst Jono Higgins: “This leads to more revenues and leverage into a positive result and buoyant sector into Q4-21 results. The sector remains catalyst rich into July/August with the growth backdrop increasingly supportive.” Listen to a recent podcast between James Gerrish & Jono on Afterpay’s peer Zip Co (Z1P) here
MM is bullish BNPL short to medium term
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