Why are you trying to sugarcoat what Afterpay do? It's short term finance with no credit checks and low limits, simple and not difficult to understand. I now understand why people mention about a BNPL bubble in the stock market.
Just because it's a small amount and shorter period of finance doesn't negate the issue of people not repaying. You can borrow $100 to someone and then ask for it back after 5 minutes and they would say piss off.
So you are trying to explain that Afterpay will have a lower default rate during and post COVID-19.
That is ludacris. How can you say a business that does not conduct credit checks will not be affected. Meanwhile all banks have raised their bad debt provisions and for example FlexiGroup has restricted who they lend money to.
Also how do you know about post COVID? We have a situation where people will no longer receive $1500 per fortnight. These people may no longer earn enough to repay their Afterpay debts, because people get excited and don't budget.
APT Price at posting:
$67.50 Sentiment: Hold Disclosure: Not Held
