Afterpay Ltd (ASX:APT) is going head on with Zip Co Ltd (ASX:Z1P) by announcing a partnership with JB Hi-Fi Limited (ASX:JBH)…
The post Afterpay (ASX:APT) also signs deal with JB Hi-Fi & The Good Guys appeared first on The Motley Fool Australia. –
It notes that this will allow customers with the ability to shop, both in-store and online, and pay with Zip’s interest free buy now pay later (BNPL) payment solutions. The retailer has not previously offered BNPL options.
Zip’s Co-founder and Chief Operations Officer, Peter Gray, commented: “We are delighted to partner with the JB HI-FI Group. We look forward to providing customers with choice at checkout, empowering them to own the way they pay at JB HIFI and The Good Guys. This strategic partnership provides Zip customers with access to even more of Australia’s favourite brands, further delivering on Zip’s mission to be the first payment choice everywhere and every day.”
Is this good news for Zip?
Initially, this news went down well with the market, sending the Zip share price almost 3% higher. Since then, the BNPL provider’s shares have given back these gains and more.
This may be due to the fact that Zip isn’t the only BNPL solution that JB Hi-Fi is taking on board.
It commented: “Customers will soon be able to shop in-store and online and spend up to $1,000 at all JB HIFI and Good Guys stores nationwide. By using Afterpay at checkout customers can spread their payment over four fortnightly instalments without ever incurring interest or fees if they pay on time.”
Afterpay’s EVP of Sales ANZ and Global Instore, Rachel Kelly, stated: “We are delighted to welcome the JB Hi-Fi group, with two of Australia’s most iconic retail brands, to Afterpay. Afterpay customers will be thrilled to be able to buy big ticket items such as electronics, whitegoods, appliances and home entertainment in a responsible manner, without incurring interest or fees.”
This appears to have taken the shine off Zip’s announcement. Furthermore, it highlights the fact that it remains unclear whether JB Hi-Fi has also taken on other BNPL providers such as Openpay Group Ltd (ASX: OPY) or Klarna.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.