Tencent Holdings said on Friday that it had bought a 5% stake in Australian payments technology company Afterpay Ltd.
Tencent's stake in the Australian company is worth about A$390 million (about $251.55 million), according to Afterpay's closing price on Friday.
Tencent, one of China's biggest tech giants, owns shares in video game companies Riot Games and Supercell and has dabbled in the food takeaway and e-commerce verticals.
The company also said earlier this year that it would focus more on smart retail and payment platforms in the future. Its instant messaging platform WeChat also allows users to make payments and book flights and hotels via the mobile app.
"Afterpay's approach caught our eye, not only because of its attractive business model features but also because its service is so in line with consumer trends." James Mitchell, Tencent's chief strategy officer, said.
Afterpay's service providers have been gaining popularity, primarily with millennials, as they allow purchases through interest-free installments, helping customers bypass the strict rules associated with credit cards or loans.
Melbourne-based Afterpay has seen considerable growth in its customer base in the U.S. in recent years, and the U.S. has proven to be a key market that the company has captured, but the concept of online consumer credit is still in a region that is emerging.
A document filed with the ASX shows that Tencent's Afterpay stake was transferred between the end of March and April.
