Tencent Holdings Limited announced that it had gained a substantial stake in the Afterpay. The Chinese company bought a 5 percent stake in Afterpay, which is a buy now pay later company having a worth of around 390 million Australian dollars.
Tencent procures a 5 percent stake in Afterpay.
The founders of the Afterpay, Nick Molnar and Anothony Eisen said,
“We feel very privileged to welcome Tencent as a substantial shareholder in our business. Being able to attract a strategic investor of this caliber is extremely rewarding and is a testament to our team and the strength of our differentiated business model.”
Tencent, a leading Digital company
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Tencent is a HongKong Stick Exchange-listed company that offers value-added services for the internet like online marketing, digital entertainment, and FIntech. The company has massively popular communication platforms like QQ< Weixin and WeChat.
A heavily used payment method
The Weixin Pay offering is one of the most used mobile payment technologies in China, which boasts of around 1 billion transactions each day. The company is now a significant player with having a 5 percent stake in Afterpay; The stake will further strengthen its stance in the Chinese markets.
Tencent Happy with the Deal
The Chief Strategy Officer at Tencent James Mitchell said,
“We are pleased to become investors in Afterpay. Inside China, we operate the leading digital payment service and a rapidly growing FinTech platform Outside China, we have actively invested in pioneering FinTech companies, providing us with unique insights into emerging FinTech services.”
Buy Now Pay Later Model
Afterpay’s payment model is one of the most used in China and keeps on getting new customers, along with its loyal old clients. Even the number of American customers using Afterpay increased to 4.4 million as per the Q3 results. The model enables clients to pay for the products in installments without paying any interest.