Christos, I see nothing wrong with the Afterpay model for the...

Christos,

I see nothing wrong with the Afterpay model for the moment but l think it is extremely limited in what it can offer to its customers going forward.

I think it is chalk and cheese when comparing it to say a Zip Money and Flexirent.

For starters, l think it's virtually impossible for a start up customer not to receive an initial Afterpay loan due to its lack of a credit check.

Alternatively, Zip Money runs its own detailed credit checks on all its customers and owns its own search engines, given that it is dealing with a much more mature market, loans up to $10,000 including medical, travel etc.

I think this is the reason that one company is growing very quickly whilst the other is building a very solid foundation with Zipmoney clearly having an eye to the future and the ability to create additional income streams due to its superior systems and products, e.g. Pocketbook.

Remember, with no credit check facilities Afterpay will always be limited to loans of $1000 or less and should government ever intervene and make credit checks compulsory for loans under this $ amount, then Afterpay won't have the immediate facilities to be able to cope.

I suspect any such government intervention would only occur if consumer complaints were to increase based on loans being given to people in the first instance who could simply not afford them and hence they then copped late penalties on late penalties.

Yarra