My experience in retail (men’s fashion) is that non-sale items...

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Kiwi trader

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16/09/20

22:21

Post #: 47401011
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Originally posted by pastperformer: ↑

It's really as simple as this.

APT charges the merchant, paypal charges the consumer.

As a consumer which are you going to choose? Afterpay, obviously.

The argument then regresses to this - "Well merchants just won't use Afterpay anymore". This simply isn't economically viable.
Afterpay has built a database of consumers, which rely on them to "manage their finances" as well as notify them of deals etc. If a merchant wants access to this client base, they will have to offer Afterpay. Given most retailers have a margin of 50%+ they aren't going to be worried about paying 4% for a huge database of leads.

The important thing for afterpay was to reach as many consumers across as many regions as quickly as possible, with the right offering. First mover advantage was always going to become critical given other players like paypal obvious ability to compete in the market.

Afterpay has used it's own free cashflow, as well as public equity to grow as quickly as possible, and so far has executed just about to perfection. (Hence no earnings).

The plan is simple, but very much one of world financial domination before the others manage to build an army.

The value and opportunity is obvious to anyone who can see beyond traditional banking.

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My experience in retail (men’s fashion) is that non-sale items are usually marked up 100-150% which only further supports your point.

APT Price at posting: $78.03 Sentiment: Buy Disclosure: Held
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