AFY (ASX) Big Future

Originally posted by traechamma ↑

For a company to generate $800k in revenue fees alone in the space of few months, you do the maths to see where the SP will be at the end of year. I've been a firm believer in the company since its listed and the recent business update only enforced my trust. AFY is a %110 profit company, they have little to no outlays to generate profits, the only risk are customers defaulting on payments however there are default fees for this and I believe afterpays partnership with touchcorp has integrated a fraud detection system that asseses the risk of purchasers within miliseconds once a transaction is made and the purchase button is clicked. The system can identify how quick the purchase was made and scan fraudulent or excessive impulse purchase history that day.

I've personally used Afterpay a few times and it's very smooth, informative and you're constantly updated on what's happening with your purchase, TXT and e-mail notifications for next debit dates etc. I also had a refund requested with no issues at all.

For what they've achieved in such little time, the future is bright and an increase of merchants of %140 in the space of months is an indicator of what's to come by end of year with interest not slowing down. I personally see AFY a house hold name along the likes of eBay, PayPal and expanding globally within the coming years. Looking forward to the July quarterly update with audited financial results for the financial year which will be promising, also looking forward to business updates, particularly Telstra Neto

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How do they prevent against bad debts wiping out profits? It only takes a small % bad debts to eliminate all margins in a business like this. And creditworthiness for small transactions very hard to assess quickly and accurately. Those with a credit card can already use that, so those with no credit card (likely a less credit-worthy segment) are the likely AFY users. I couldn't find anything convincing about this in the Prospectus, but would be interested to learn from someone who clearly understands the business well