Ann: Business and Funding Facility Update, page-73

The late payment fees they charge could be a source of recurring income. $7 every 7 days until the debt is paid. I can see a lot of people just paying that for months..

Late Payment Fee: $10 Late Payment Fee if a payment is due from you but not received by Afterpay in accordance with the Payment Schedule, with a further $7 Late Payment Fee added seven days after the payment is due if the payment is still unpaid.

I don't see the risk of default on the debt that much higher than traditional consumer credit card debt in fact I'd say it would be significantly lower as the customer wants to continue using the Afterpay service.

I agree that the model is still unproven