Here's why Afterpay (ASX:APT) is making news again

Afterpay shares its views on cryptocurrencies in the Australian payments' space.

A young woman working in a coffee shop holds a sign saying: 'Bitcoin accepted here'

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Afterpay Ltd (ASX: APT) share price closed in the red on Wednesday.

Afterpay shares were on the move after the company filed a submission to the federal Senate select committee investigating "Australia as a Technology and Financial Centre".

Let's investigate further.

Why is Afterpay making the news again?

Afterpay is making headlines again after sharing its views that a transition of payments services to allow blockchain technology could reduce payment costs for merchants.

The buy now, pay later (BNPL) company urged the Australian government and Reserve Bank of Australia (RBA) to allow policymakers to develop an Australian "stablecoin".

For reference, a stablecoin is a type of cryptocurrency that has a relatively 'stable' price. Usually, this is achieved by pegging itself to an already established currency, such as the US dollar or Australian dollar for instance.

These stablecoins attempt to solve the problem of extreme volatility in cryptocurrency markets.

Afterpay does not offer any cryptocurrency-related services or payment methods at the moment. However, it told the Senate select committee that "growing FinTech businesses" have business models that have not been "contemplated by pre-existing regulatory frameworks".

Consumers' changing preferences

The call is as much is a reflection of the current payments services landscape where merchants have been forced to adapt to the demands of consumers in the modern FinTech world.

Afterpay echoed this sentiment in its submission, stating its customers "now expect to be able to access more flexible ways of paying" for retail services.

The company is therefore adamant blockchain will be of immense benefit to merchants, removing intermediaries such as banks and credit card companies from the equation.

This would have the net effect of reducing transaction fees associated with card payments, according to Afterpay.

US payments giant Square, Inc, which is in the process of buying Afterpay in a $39 billion transaction announced in August, already earns "significant revenue" from Bitcoin, the flagship cryptocurrency that uses blockchain technology, according to a report in today's Australian Financial Review.

Square recognised a 200% year on year increase in its Bitcoin revenue in the last quarter to US$2.7 billion and owns 8,027 Bitcoins, according to the report.

The Senate enquiry is ongoing and heard further commentary from Afterpay senior executives on Wednesday. It remains unclear if the Australian government has any intention of developing an Australian stablecoin.

Afterpay share price snapshot

The Afterpay share price has had a choppy year to date, having posted a return of 10% since January 1. It is also down 1.6% over the past month.

Despite this, Afterpay shares have climbed 73% over the past 12 months.

This has outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Two smiling work colleagues discuss an investment or business plan at their office.
Technology Shares

Why Goldman Sachs rates this ASX tech share as a top buy

Let's see why the broker rates this stock highly right now.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Technology Shares

WiseTech shares have surged 34% since April. Is it too late to buy?

Can WiseTech shares keep charging higher? Here’s what this investing expert expects.

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Technology Shares

Up 87% in 12 months: Why this ASX tech share is still a top buy

This technology business still has loads of potential, according to a fund manager.

Read more »

a group of three cybersecurity experts stand with satisfied looks on their faces with one holding a laptop computer while he group stands in front of a large bank of computers and electronic equipment.
Technology Shares

2 ASX 200 tech stocks Morgans rates as buys

The leading broker has named a couple of shares to buy right now.

Read more »

Man smiling at a laptop because of a rising share price.
Technology Shares

Is it time to buy ASX data centre shares?

ASX data centre shares have been rebounding lately. Will they continue to?

Read more »

a group of people sit around a computer in an office environment.
Earnings Results

Guess which ASX 200 tech stock is rocketing 12% on record results

Another half, another record result from this high-quality company.

Read more »

Man on his laptop standing next to data centres.
AI Stocks

3 reasons to buy this $9 billion ASX 200 AI stock today

A leading expert forecasts this $9 billion ASX 200 AI stock will deliver “meaningful earnings upside”.

Read more »