Why is Afterpay cash flow negative? I mean they have market share. I know that they must wear the cost of the outlay and even CC need to pick up the late penalties/interest. Maybe it is to do with the size of the layby portfolio? I mean perhaps there needs to be minimum portfolio (how should I word this?). Or are there layers/segments that do better at paying back without penalties. Maybe size of purchase?
CC's having successfully achieved robust profits, seem to not wear a buy cost - maybe the banks wear that? Why would banks feel the need to get on so quickly? Does the merchant feel safer with BNPL rather than CC setups. Is that why banks are concerned?
