The dent in SP shows the flaw in the business model. It has no moat. This has scared some.
That is, barriers to entry are not insurmountable, and it operates in markets subject to goliaths, such as Visa, to "walk in".
What I mean by walk in, is the After Pay, have "paid" to develop the BNPL model and buyer behaviour.
That being said - what is to stop banks stepping into the space? Whilst they are very immature, neobanks could easily operate in this space a well.
Whilst VISA is a credit provider, perhaps it can make money on transactions - let alone that buyer behavior creates data that is very valuable to many.
What is to stop Westfield from doing it? The list goes on.
IMHO, APT has paid the way for the BNPL without credit buyer behaviour - and is less than David, in a world of goliaths in the transactions space.
DYOR. GLTAH.
Stop hating, start appreciating, cry me a river!!!, page-51
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