Qantas and Afterpay Join Hands For Points
As of the 6th of July, Qantas Airways Limited (ASX: QAN) and Afterpay Limited (ASX: APT) are launching an exclusive partnership which will allow Qantas Frequent Flyers to earn Qantas points with APT Buy Now Pay Later platform. This new service benefit will allow Qantas Frequent flyers to earn up to 5000 Qantas points when they link their membership number up to their Afterpay account.
The joint venture has been encouraged by the Qantas Loyalty CEO Olivia Wirth, who highlighted the benefits to the ‘frequent buyers’ now able to maximise their points via everyday transactions. The move caters to a broad audience, with the 13 million members having idiosyncratic spending habits. The offer allows people to increase their points accordingly.
Anthony Eisen, the CEO and co-founder of Afterpay, said that partnering with Qantas will have massive benefits for the fintech company, absorbing the infrastructure of the largest and most recognised rewards program status of their new partner. This program is an excellent way for Afterpay to add value to their customers with no additional cost to them.
New members will benefit from 500 Qantas Points on starting up, and by adding customer Qantas Frequent Flyer membership numbers to the account, they will earn 1 Qantas Point per AUD1 spent up to a total of 5000 points. Concurrently, active Afterpay users will benefit after the first AUD1000 spent and receive the same 1 Qantas point up to 5000 points for every dollar spent. Afterpay members should move quickly on this offer, as only the first 50,000 members to link their accounts will be able to participate.
This partnership follows APT reaching one million active customers in the UK during their first year of operations with Clearpay. More than 1,100 brands offer Clearpay to their customers, and during the COVID-19 pandemic, they saw a 40 to 50 per cent increase in the weekly run rate during January and February. The Buy Now Pay Later system has shifted the way that consumers shop at the same time as the pandemic shift towards online shopping.
Adding value to customers comes at a time for QAN where COVID-19 re-emergence in Victoria means a potentially restricted Trans-Tasman travel bubble. NZ Prime Minister Jacinda Arden proposed a state by state approach to travel which could allow QAN operations to continue. Concurrently, the Australian Competition and Consumer Commission has been set to monitor pricing and given special powers by Treasurer Josh Frydenberg as a watchdog for abuses of competition and protecting consumers in the long term.
The main point of competition contention was QAN’s 19.9 per cent acquisition of Alliance Aviation last year. APT is doing well during this macroeconomic environment, with QAN gearing up to start flights just as soon as approval comes through. The partnership will benefit both companies and help create value for all parties involved.
By Caroline Wong
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