Objective Analysis: Psychology of using BNPL, page-86

Afterpay's late fee revenue was $32.6m and they had 7.3m customers - so $4.50 per customer in late fees (or $9 per annum) on average. Whilst it would be possible to rack up any amount of late fees you can think of, this is NOT happening - each customers is paying $9 per annum on average.

You obviously didn't do statistics at school. The fees are not a Normal Distribution. They are massive right skewed distribution with the vast majority paying nothing and a handful paying a fortune. So the "average" (mean) $9 payment doesn't really tell us anything useful.





Interests, on the other hands, are the bread and butter for cards, this is how this product was designed few decades ago. If you can't pay your outstanding amount in full but the minimum amount, the card issuer won't stop you from clearing it because this is the only way to generate revenue except annual fee.

- Credit cards are unsecured lines of credit. The bank assumes you are smart enough to manage your own money.

- BNPL are just a modern version of a department store account. The store assumes you are an irresponsible spendthrift. They only give limited credit. No interest but high penalties for default. The account is frozen until paid off.

If you don't know the difference you shouldn't be making comments.

With an average transaction size of $150 and a capped late fee of $68,

Per item. If you are one day overdue.

Is that is that so hard to understand?

I keep reading BS claims about APT customers not paying more than $10pa in late fees. it is 100% false.