Am I right in thinking the company reports a bad debt charge against the item? I think you keep the item, get cut off from the Afterpay app, the company takes a hit.
The reason why this model works is because typically the purchases are small enough and you pay them back over a small time horizon where it's unlikely that you wouldn't be able to budget for it. However, unforeseen things do happen and that makes up the small default rate.
APT Price at posting:
$18.36 Sentiment: Hold Disclosure: Held
