APT Margin Transaction Losses, page-34

Something for those who think afterpay has better credit worthy customers than others. Please point out where I'm wrong in the following.

Afterpay links to a credit or debit card. It automatically deducts the payment. Therefore the only reason somebody can be late on their payment is if they're at their credit limit or the linked account for their debit card has no money in it. The people using afterpay as a choice instead of a necessity where they can pay another way upfront but choose afterpay should never pay late fees. They've got money in their account or room on their credit card.

So how come afterpay has the highest amount of late fees in the sector? In the 6 months to the end of 2019 they had $32.6m in late fee income. Basically over recent years they've averaged ~$10 per year in late fees per active customer. This is despite them supposedly shutting off any customer who is late on a payment.

ASIC backed this up with their review of the BNPL sector to mid-2018 when a full 18% of afterpay active customers were charged a late fee PER MONTH!!!!

If they've got such credit worthy customers and are so strict with shutting off customers who are late, why do they earn so much in late fees? Are their credit worthy customers just making late-fee donations by choice? It's another thing that simply doesn't add up.