Competition, page-4

https://www.livewiremarkets.com/wires/afterpay-early-traction-in-the-usa 

Great article on livewire markets tonight that gives some perspective on APT web traffic, US uptake, valuation and competition. 

"10% of online retail in Australia is now processed by Afterpay, and the opportunity in the US and UK is orders of magnitude greater. If the firm achieves similar success in the US, Afterpay could be valued in line with payments peers like Stripe (~$20 billion) or even PayPal (~$105 billion)"

"Competitors lack Afterpay’s simplicity, and mostly give consumers a traditional line of credit couched in the language of fintech. Zip, frequently cited as a competitor, offers a wallet with a spending limit. Affirm in the US offers comparatively high value loans with interest. Klarna similarly, offers loans and charges interest. None of Afterpay’s competitors have shown the discipline of Afterpay’s management to focus on one, easily described (in a single word!) credit product"

"By forecasting their future customer base, average transaction value and transaction frequency per year, it’s possible to model revenue under different scenarios. By applying their net transaction margin (which can be flexed by financing costs, operating costs, defaults etc) you can come up with a profit figure and form a valuation"