Good point Alex however the majority of afterpays merchants are clothing retail merchants, we are not dealing with hundred of thousands of dollar transactions to worry about debt and defaulting wiping out profits, especially when profits are pretty high at this stage. I assume afterpay obviously have a ban list and won't allow existing customers who default a certain amount of items to repurchase. Also, From my knowledge, when signing up as a customer on afterpay and accepting terms and agreements/privacy agreement, you are allowing afterpay to share any relevant information to "credit reporting bodies and collecting agencies to report account information as permitted by law. To request a credit report, we will provide information to the credit reporting body that identifies you". You must provide a CC to afterpay when committing to a purchase, Touchcorps integration with afterpay also completes a risk assessment based on the CC provided and other info you provide.
I agree that there is risk involved however I also believe afterpay have strategies and modules to prevent defaults let alone debts accumulating to the point it wipes out profit
AFY Price at posting:
$2.16 Sentiment: Hold Disclosure: Held
