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Skimmed over an article in today's wall street journal (monday July 13) on page B6, about Afterpay, Ltd.

Based in Sydney, but expanding into other countries including the US, its an installment-payment company. Make your purchase, receive it, pay it off in 4 installments, no interest, pay a penalty if you miss an installment payment.

Just raised $450 million from institutional investors to expand.

Their revenues come from a fee collected from the seller (just like credit cards do).

Their rivals include Zip Co., Splitit Payments Ltd, Sezzle Inc.

Earnins report for end of 2019 show $3.31 billion in goods bought, $152 million in revenues (15% of that was late fees paid).

5.6 million active users in the US as of June 30.

I am under the impression that its for online shopping only, but I might be wrong
I only skimmed the article, apologies if i got anything wrong.
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P.S.

Some folks are putting faith in this company. Share price has blasted off into the stratosphere.
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Some folks are putting faith in this company. Share price has blasted off into the stratosphere.

Probably RobinHood investors, LOL

AJ
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Their revenues come from a fee collected from the seller (just like credit cards do).

Before the pandemic, late fees were 15% of the revenue. Late fees that are 'capped' at 25% of the loan balance, for a loan that's supposed to be paid off over 4 months. That's an effective 75% interest rate. And your account is locked if you miss a payments. From a borrower perspective, it sounds like another version of a payday loan to me.

AJ
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I am under the impression that its for online shopping only, but I might be wrong
I only skimmed the article, apologies if i got anything wrong.


It's currently available in physical stores in Australia, and will be in the US. I'm guessing that the pandemic put a hitch in the US physical store rollout.

AJ
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