In morning trade the Afterpay Touch Group Ltd (ASX: APT) share price has stormed 10% higher to $4.40.
This latest gain means the payment company's shares have now gained over 47% in just the last 30 days.
Why are its shares higher?
This morning Afterpay announced that it has entered into an agreement with Jetstar to offer its services to the airline's customers.
According to the release, the agreement means that from today consumers will be able to use the Afterpay service on Jetstar.com for domestic flights that cost between $200 and $1,000 and are purchased at least eight weeks in advance of travel.
In the future the two parties may extend the agreement to cover international flights.
This partnership marks Afterpay's first buy now, pay later venture in the travel industry and has the potential to be an extremely lucrative one in my opinion.
After all, as Australia's leading low-cost airline, Jetstar carried over 37 million passengers last year.
Furthermore, if the service is a success and adds value to Jetstar, I feel there is a reasonable chance that it could be extended to cover Qantas Airways Limited (ASX: QAN) domestic flights as well.
All in all, I think this puts the payments company in a great position to continue its meteoric growth.
Should you invest?
There's no debating that Afterpay's shares look expensive on paper and have a significant amount of growth built into them.
But I do believe the company is in a great position to deliver on the market's high expectations over the next few years.
This could make it a great option for investors with a higher-than-average tolerance for risk.
