I think there are a few aspects to APT thatare possibly a lot more important that people realise.
1. IMO the most powerful part of the business model is the fact that theyachieve an incredible amount of free advertising.
- Retailers promote APT as a technique to increase sales. You have separatecompanies advertising your company, to give you a percentage ofthe sale of their product, without your intervention in the sale. To methis is an incredible position to be in as a business.
- Customers promote APT directly to merchants. To have customers goingout of their way to sign your company up to new merchants without yourintervention is mind blowing.This self-fulfilling network effect is sopowerful that APT can grow organically without the need for advertising orspending staff’s time and effort to push this growth. Having said that, nowthat they have raised over $300m they can actively push this snowball to thelimits that their infrastructure can handle. This is why I believe the parabolicgrowth will be maintained for a significant amount of time.
2. The power of a large, specific spendingdata
In my opinion, the BNPL part of APT is justan effective method of penetrating the market. Once the company has significantscale (at this rate it won’t me much longer) the data they are collecting from consumers,particularly millennial spending habits, will be unbelievably valuable. Theywill have multitudes of opportunities to leverage the data in extremely high margin,profitable ways.
3. Customer loyalty and a trusted brand
APT basically has a cult following of loyalcustomers. When APT has scale and begins rolling out the aforementioned highmargin products and services, customers will eat them up like Apple userssleeping outside the stores before the new iphone comes out.
This business model is uniquely effectiveand will be unfathomably profitable with scale. Please let me know if there areany other aspects you think are as important.
