Afterpay adds former US Treasury Secretary Lawrence ‘Larry’ Summers to US Advisory Board

Former US Treasury Secretary will be joined by former Reebok chief executive Uli Becker and Matthew Kaness.

The appointment of high-profile economist Larry Summers to Afterpay’s US Advisory Boardis should attract investor attention. Picture: Bloomberg.

ASX-listed Afterpay has moved to bolster its financial credentials with the appointment of former US Treasury Secretary Lawrence “Larry” Summers to its US Advisory Board.

Also joining the buy now, pay later company’s newly-formed advisory board is former Reebok chief executive Uli Becker and Matthew Kaness, the former CEO of online-fashion house ModCloth.

But the appointment of high-profile economist Mr Summers is expected to attract investor attention. Mr Summers is widely know for his role as Treasury Secretary under US president Bill Clinton and later a director to the White House National Economic Council under President Barack Obama. He is currently an emeritus president of Harvard University and sits on the board of Jack Dorsey’s payments business Square.

Afterpay said its US Advisory Board was formed to help the payments company identify key business opportunities and partnerships at a time when American consumers were increasingly turning to alternative payment methods to avoid revolving and extended debt.

“Afterpay is leading the market by reinventing the way people shop and pay with alternatives to traditional credit that encourages responsible spending and control in how consumers pay,” Mr Summers said on Wednesday.

“I look forward to working with the leadership team to make the most of the opportunity before them.”

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Since entering the US market just over a year ago, Afterpay has seen fast paced growth with more than 6500 retailers offering the service. Globally Afterpay has 5.2m consumers using the platform worldwide.

Afterpay co-founder Nick Molner said the new advisory board represents the “best minds and most reputable experts in the commerce and financial technology market”.

“With their support, Afterpay will continue to build on our business momentum and forge strong partnerships with brands who want to offer their customers a way to pay that encourages responsible spending, control and convenience,” Mr Molnar said.

Elsewhere, Mr Becker has extensive experience in marketing and sales for global consumer goods. He was a senior brand manager at sportswear company Adidas, and later served as chief executive of Reebok. More recently, Mr Becker advised and invested in start-up companies.

While Afterpay and its rivals – Affirm and Klarna – have experienced strong support from consumers and retailers over recent years, the sector is becoming increasingly crowded. Meanwhile the likes of credit card providers Mastercard and Visa start are expected to become more active in the space.

In August Afterpay reaffirmed its target of achieving $20bn in global underlying sales by 2022. Global sales are running at $5.2bn, but more than doubled over the past year. Afterpay shares, which last month hit a record high of $36.57, closed the session on Wednesday 0.7 per cent higher at $34.88.