PayPal officially joins the race, page-389

A lot of this will be determined by how well PayPal execute on this - you would think as they've watched APT erode their business volumes in Australia they're hardly going to sit back and let it happen in the US market, plus EU and Asia. In short PayPal will not want to coexist with APT, they'll want them gone. I don't actually think this will kill off APT, but it did just make life a lot harder. Firstly I can't imagine any enterprise account paying more than 2.9% + 30c - in fact the phones in APT account management offices may well be ringing today with clients saying they'd like to renegotiate their fees. APT has a nice app and user platform etc etc but are still only bringing several million users to the table, many of which presumably have a PayPal account also. When 'Pay in 4' goes live the PayPal accounts of something like 200m Americans will light up with a buy now pay later option, for them to presumably use anywhere PayPal is integrated. Afterpay have about 7m. It's growing, but still, 7m. Fronting up to their enterprise sales meetings, offering a platform with 7m, 8m or whatever number of users and charging say 38% more to the merchant than PayPal (the gap between 4% and 2.9% over 2.9), is going to be a tough sell. For the largest retailers (Walmart, Amazon, Target, Home Depot etc), the APT offering arguably becomes completely unpalatable in comparison to PayPal offering. I think APT, along with Klarna, are now the only BNPL providers with the scale and capability to provide some offering of value, but entering at these price levels, with a global payments giant now determined to stomp you out of existence, is speculation bordering on insanity.