Afterpay last week told shareholders its application for a lender’s license through the California Department of Business Oversight (DBO) had been successful. The license was issued on 12 November.
The fintech had opted for the license with hopes to facilitate a “potential future expansion” into other service offerings in the US that “align with the company’s business model”.
It added that it regularly engages in dialogue with federal and state regulators in the US, with Afterpay saying it has made a commitment to consumer protection and compliance.
The announcement made on the first day of trading for the year (Thursday) saw the company’s shares increase from $29.14 on Tuesday to a high of $31.10 on Friday.
Afterpay’s shares were $30.09 on Monday morning.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.