The debate since Friday hasbeen rather unedifying - I have made a couple of points on here to which not asingle naysayer has responded to. I'll be honest as a holder - @$28 APTprice probably slightly ahead of where it should have been, today's price(at the CR price), probably closer to fair value at this point in time (maybe slightlyundervalued). From here - Visa announcement will do nothing to stop customer'ssigning up. This may result in some merchant's asking more questions ofAfterpay model & asking about the future impact of Visa entering themarket? But I’d also make the followingpoint – go to Afterpay or Clearpay website & then to the Visa website (orany bank/credit provider website) & ask who is going to do more for a retailer– Afterpay or Visa/Banks/Other credit providers. I’ll add the following below – I really amafter a response from a naysayer as it will help inform my view.
The Visa threat is only real if it can do both of the following:
1. Lower cost to merchants (APT model involves essentially taking a commission for generating sales) - Visa says that it may do this for free, though this isn't being truthful - they will still earn a transaction fee.
2. Lower cost to consumer (APT currently free, Visa do not offer credit) - so the only way this can happen is if credit providers cut their margins to 0 - as APT doesn't charge consumers for service. This would be a real change, however I feel this is an unrealistic expectation of credit providers.
