At this point this should have no impact on the Afterpay share price. As someone who is fairly knowledgeable about business strategy, I'll explain.
The logic here is very very simple. The US and International Markets offer significantly more revenue than Australia due to their consumer market size. So Paypal coming to Australia actually has very very little impact on the net revenue of Afterpay.
The second point is market leadership. This applies to all businesses. Once a business has established itself as a market leader in an area, and has achieved overwhelming market share, it is incredibly difficult for future competitors to penetrate that market, regardless if they have a better product or offer a better service. Afterpay is virtually everywhere in Australia at this point. It has become the gold standard for millennial consumerism.
Paypal entering does practically nothing at this point, simply because consumers just don't like to switch and have already grown accustomed to Afterpay. Like Uber in Australia. Uber remains the primary ridesharing service in Australia by a significant margin even though competitors like Ola or Didi might offer cheaper services. The point is this. Uber got here first, established a base, and now people don't want to switch over to competitors because they've gotten used to Uber regardless of the discounts being offered elsewhere, it's just an uphill battle for Ola, Didi, Bolt etc.
Therefore, Paypal entering Australia should have little to no effect on Afterpay at all.
APT Price at posting:
$108.33 Sentiment: Buy Disclosure: Held
