Ann: Afterpay Funding Position, page-29

FACTS:

CONSUMERS REPAY BNPL FIRST/ DEFAULT ON IT LAST: we know from consumer advocates complaints to Gov and submissions to senate inquiry that they are seeing ppl repaying Afterpay and bnpl even if they are holding debts on credit cards and personal loans. They default on bnpl only as a last resort as they want to maintain access to it.

BAD DEBTS ARE CONTROLLED IN REAL TIME: as per announcement last week. This means they can tighten credit risk controls if needed. Growth is still exponential, so all that would happen is growth would drop slightly as you reject lower quality customers.

AFTERPAY ALREADY REJECTS 30% OF EXISTING CUSTOMERS AND 50%+ OF NEW CUSTOMERS: the system is very discerning.