Everyone do your own research.
My opinion, I looked at this stock when it was $12, I didn't buy then because I thought without researching, what is the purpose of this? It will attract all the scammers to abuse this system and no-one will end up paying. The company will end up losing money. too risky for me.
However now that it got the institutions investing 300m at $23, I thought hang on let's take a better look at it.
And to be honest, I believe it is now the time to invest in it. It has the capital raised to take it to the next level. There is also zip pay as well.
So i decided to download the afterpay app from google app store, to my surprise it was easy to sign up, I tried the same with zip pay and i tried to register it took me out of the app and into a website, Zip pay was more complicated to sign up and i havent signed up to that yet..
To be fair I tried to purchase something using after pay but it told me i needed to spend $70 which i wasn't prepared to do that.
I did more research on the reviews from trust pilot. I noticed after pay had 10% bad 1 star reviews,
https://au.trustpilot.com/review/afterpay.com
and zip pay had 50% bad 1 star reviews.
https://au.trustpilot.com/review/zippay.com.au
To me that tells me more people are happy with the after pay product.
A couple of other things i read on different websites Apt charges 4% - 6% commission and Zip pay 2% commission. for reference i think paypal charge 3.9% commission ebay around 10%?
Bad debts are still an issue with apt however the percentage is going down. I can't find these figures now, however if anyone has them, please post them here for me.
Someone on hot-copper had concerns with this stock that with the retail recession hitting sales will slow down and the company will not make enough money, but I take it perhaps bad debts will be much higher? Regardless 4% of all sales is a lot of money, whether we are in a recession or not. 4% of a $1 billion is $40 m, and 4% of a trillion is $40billion.
This stock is still in early stages, who knows if it will be successful like paypal? There could be another player out there in the near future with a better product. But one thing that this company has got is the ease of use, whether you are a merchant to an end user.
Currently the easiest way to pay instore for me is using a credit card, just tap and pay if under $100, plus i get 30 days interest free if i pay on time.
To pay online with a credit card, I have to put in credit card details which is time consuming. Infact paying with paypal is easier, and often I pay with paypal because i do not have my credit card details on hand. It is charged direct to my credit card and I also get 30 days interest free on my credit card.
Now if afterpay can provide a similar service of ease of payment and interest free days then the benefits will be huge.
Imagine if afterpay offered a premium service of 90 days interest free, a lot of people would start using this instead of credit cards that offer 30 days. At 4% they still make a profit and in return get a lot more transactions through it.
Who knows which direction this will go, so far it is looking positive. Everyone do your own research, download the app and try to use it, if you have a ecommerce website try to install it to see how difficult it is to do.
If the share price drops by $2 on monday I will be purchasing more, as i think long term if this company is successful it will be worth a lot more.
