Afterpay share price pushes higher on Qantas partnership

The Afterpay Ltd (ASX:APT) share price is pushing higher after announcing a partnership with Qantas Airways Limited (ASX:QAN) Frequent Flyers…

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The Afterpay Ltd (ASX: APT) share price is pushing higher on Monday after announcing an exclusive new partnership with Qantas Airways Limited (ASX: QAN).

The buy now pay later provider's shares were up 2% to $68.80 at one stage, but have since pulled back a touch.

The Afterpay share price is currently 0.7% higher at $67.95.

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What did Afterpay and Qantas announce?

This morning Afterpay and Qantas announced the launch of a new partnership allowing Qantas Frequent Flyers to earn Qantas Points with the buy now pay later platform.

From later this week, Qantas Frequent Flyers will be able to earn up to 5,000 Qantas Points when they link their membership number to their Afterpay account.

Qantas Loyalty CEO, Olivia Wirth, notes that earning points with Afterpay will be advantageous for the large number of users classed as frequent buyers. These are users that maximise their points earn on everyday spending and not just flights.

She added: "Financial services is one of the most popular ways to earn points in the program, it's the quickest and easiest way to build your points balance. With our 13 million members all having different spending habits and financial preferences, it's great to be able to offer more options and more rewards."

Afterpay's CEO and Co-Founder, Anthony Eisen, was pleased to be partnering with one of Australia's largest and most recognised loyalty programs. He feels it will provide significant upside for Afterpay customers.

Mr Eisen said: "We are always looking for ways to add value for our customers and this partnership between two iconic Australian brands is a great way to reward them for shopping with Afterpay. Now our customers can earn Qantas Points on their purchases at no additional cost, just by using Afterpay as they normally would."

How do you earn points?

If you're not an Afterpay customer already, you'll earn 500 Qantas Points for joining and adding your Qantas Frequent Flyer membership number to your Afterpay account.

After which, you'll earn 1 Qantas Point per $1 spent, up to a total of 5,000 Qantas Points.

If you're already an Afterpay user, you'll have to wait a little longer before you start accruing points. Once you've spent $1,000, you'll earn 1 Qantas Point per $1 spent. This is also up to a total of 5,000 Qantas Points.

Though, it is worth noting that the offer to existing Afterpay customers is limited to the first 50,000 members who link their membership number to their Afterpay account.

Foolish Takeaway.

I think this is a positive move by Afterpay and could pull in more new customers of an attractive demographic.

Though, given the limitations on the points you can accrue, it won't be sending you to Europe or even interstate on a Qantas plane any time soon.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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