CBA

The demand generation and marketing expenditure aspect in the network characteristics of Afterpay and Zip Co ((Z1P)) are less replicable aspects, and Citi considers consumer engagement and usage will determine whether current pricing can be sustained.
Moreover, the broker considers the online user experience in the bank offer inferior, as a user needs to enter card details versus using an Afterpay checkout button. The pay-in-4 instalments as a concept is centred on the consumer and, again, Citi does not envisage this will compete with Afterpay or Zip Co directly on the merchant side.
Morgan Stanley agrees Afterpay has protection from the sales referrals that stem from its merchant base and a well-known brand, including a branded digital checkout with merchants globally. Larger purchases can also be handled.