Australian “buy now, pay later” (BNPL) services provider Afterpay is planning to expand its services in at least four continents, Reuters reported.

The company intends to capitalise on the demand for BNPL services in the e-commerce industry after its annual loss more than halved.

Afterpay is currently eyeing the acquisition of Singapore-based BNPL firm EmpatKali for expanding into Asia, the report added.

EmpatKali primarily focuses on the Indonesian digital economy, which is expected to become a $130bn market by 2025.

Speaking on EmpatKali acquisition plans, Afterpay CEO Anthony Eisen said: “They have got an established, albeit very early stage position, in Indonesia.”

Founded in 2015, Melbourne-based Afterpay offers interest-free instalments on purchases and makes money by charging merchants a commission.

The alternative credit firm also charges a A$10 fee from customers who miss their payments and freezes their services until the dues are cleared.

In 2019, the late fees accounted for 18.7% of the company’s income, down from 24% in 2018.

For the year ended June 2020, Afterpay – which has nearly 10 million active users – reported a loss of A$22.9m, the Reuters report added.

Earlier this week, Afterpay inked a deal to acquire Spain-based peer Pagantis from NBQ Corporate.

Afterpay aims to expand its footprint in Spain, Italy, and France, where Pagantis currently operates.

Last week, Japanese lender MUFG acquired a 5% stake in Afterpay.

Last month, Afterpay partnered Google Pay to expand its BNPL service.

In May, Chinese multinational conglomerate Tencent acquired a 5% stake in Afterpay for around $252m.

Afterpay is listed on the Australian Securities Exchange (ASE).