Well said, any potential discount in fees would come down to APT's financing arrangement vs. PayPal's financing arrangement.
BNPL is essentially borrowing and then turn it over 3 times a year ($500m loan doing $1,500m turnover given installment of 4 times). That says financing cost is the key.
My recall is that APT borrows from Goldman Sachs, JP Morgan and Morgan Stanley do suggest to me that they are borrowing expensive from the investment banks, rather than from a commercial bank; and it is very reasonable that ApT aren't able to borrow cheap given its P&L and business model still unproven.
I haven't been able to run numbers yet, but my gut feeling is that it won't be easy for APT to match pricing with PayPal given that ApT would have much more expensive financing cost than PayPal, limiting how much APT can do.
Now that PayPal is in the game, I suppose Amazon is thinking just the same now! So APT is trying to fight two huge guys on their turf.
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