Ann: S&P DJI Announces December 2020 Quarterly Rebalance, page-90

Well the big difference is that Afterpay may be in a unique position where they can use their momentum to become a global accepted payment platform without having to compromise margins. In contrast, pay-anywhere products as per tap&zip, quad pay chrome extension and Klarna ghost cards are very low margin products (around 0.7% by my estimates which would be covered by the likes of VISA, not merchants), but good at growing customer base.

But if a business like APT can use that momentum and grow massively with all transaction raking in 4-6% margins then thats a HUGE competitive advantage and is one of the reasons why this would warrant a huge premium compared to competitors.

Having said that, I do feel Z1P is good value in the low 5s and in my view this would all be priced in at those prices.