Many people, including professionals, treats Afterpay as a different kind of credit product, or credit in hiding. In fact, it has nothing to do with credit business.
A credit card offers a loan (MONEY), and it gets interest as a return.
What Afterpay offers is a SERVICE, which improves lay buy shopping experience. As a result, retailers are happy to pay a fee.
Yes, Afterpay “accidentally” provides interest free period in the process, but the business model is not built upon interest. If anything, it is asking customers to avoid interest.
Using a service to replace loan as value for customers, Afterpay is truly a disruptor. The founder has explained his story many times: “it is about better retail experience”. The market has not got this yet. They keep talking about interest. I guess this is why Afterpay does not have a real competition. Good for all our shareholders.
APT Price at posting:
$18.13 Sentiment: Buy Disclosure: Held
