To add to my previous post, There is one more factor I failed to mention. Even if the cost of doing additional checks etc. is not prohibitive, and they manage to work around it, the fact that they would have to introduce all those steps would put them on the level with a traditional credit card company. This will severely impact user experience and stop their explosive traction and user acquisition. This is a secondary effect which will only be felt overtime as their growth slows and churn begins to creep up, meaning their customer acquisition costs will go up. This user experience effect cannot be overstated, we as shareholders often forget about the factors that make a company successful.
Afterpay is not a tech company. Building something like Afterpay is orders of magnitude easier than building a financial company issuing credit cards. They have just found a regulatory hole and conducted arbitrage in it, and now they have been caught. Time will tell how this pans out.
I don't hold and don't care which direction the price goes, but this reminds me a lot of Groupon - that was also a 'tech' company that was destined to become the next $200B market darling, look where it is now.
APT Price at posting:
$11.75 Sentiment: Sell Disclosure: Not Held
