Will we ever see $80 again this year, page-59

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Christos12

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15/09/20

11:05

Post #: 47346679
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Originally posted by MattHC: ↑

I recently signed up for an Amex credit card. I had a look through their website and saw that they also offer installment payments for your credit card balance, called 'Plan It'. Obviousy there is a fee attached.

I don't think this Amex 'Plan It' product will serve to move APT customers away from BNPL and onto Amex. Rather, I would think that it may serve to slow down the rate at which customers move away from credit cards to BNPL.

CBA and NAB's new interest free cards will no doubt also chew into APT's bottom line, but it will only be minor. The majority of APT users pay for their purchases on time, and would have no interest in wearing a late fee with APT, or a monthly fee elsewhere (which is why 78% of APT users have not incurred a late fee).

However, APT still collected $69m in revenue from late fees last year, and considering the majority of their 10m users don't incur late fees, we can assume that there is a small % of users that would be incurring late fees which would be greater than the monthly fee of these no-interest credit cards.

So a sensible APT user may assess this in three ways... 1) Start paying on time 2) Change to a different product with lower fees, based on the user's existing habits, or 3) Keep paying APT late fees.

I can see a small % of APT users moving to a fee-free credit card, or perhaps using both products.If this is the case, this would make a small dint in APT's revenue, but may also result in a minor improvement to their Net Transaction Margin.

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I don't understand why there is "no doubt" that the new credit cards which are even more expensive and less beneficial than the previous credit cards will even start to impact BNPL.

Their new cards are terrible products and will be withdrawn from the market very quickly.
The only thing the banks are going to destroy is their own shareholder value.

Last edited by Christos12: 15/09/20

APT Price at posting: $75.36 Sentiment: Buy Disclosure: Held
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Will we ever see $80 again this year, page-59

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