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02/09/18
13:00
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Originally posted by Jameshot
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Many people, including professionals, treats Afterpay as a different kind of credit product, or credit in hiding. In fact, it has nothing to do with credit business.
A credit card offers a loan (MONEY), and it gets interest as a return.
What Afterpay offers is a SERVICE, which improves lay buy shopping experience. As a result, retailers are happy to pay a fee.
Yes, Afterpay “accidentally” provides interest free period in the process, but the business model is not built upon interest. If anything, it is asking customers to avoid interest.
Using a service to replace loan as value for customers, Afterpay is truly a disruptor. The founder has explained his story many times: “it is about better retail experience”. The market has not got this yet. They keep talking about interest. I guess this is why Afterpay does not have a real competition. Good for all our shareholders.
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You write this as though everybody who has a credit card pays interest? It could not be further from the truth.
A card card is a way of getting free credit for up to 45 days before paying back the full amount.
If you do not pay the full amount then you will be hit with very high interest rate up to 18 plus percent.
If you use the service of a credit card as it should be used, the only fee per payable per year is the yearly account fee of approx $90.
I never pay interest. I will repeat that statement for the stupid. "I never pay any yearly interest" period.
It pays to know what you are doing.
There's an old saying " You cannot legistrate for stupidity"
GLTA