How Does Afterpay Make Money? | Business Model & Revenue Streams

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How does afterpay APT really make money? Afterpay stock / APT stock business model. Afterpay is an Australian financial technology buy now pay later (BNPL) company operating in the United States, United Kingdom, Australia and New Zealand. Afterpay was founded in 2015 by Nick Molnar and Anthony Eisen to provide a platform allowing retailers to offer online layby. With the introduction of the Afterpay mobile app, Afterpay expanded its offerings to use at in-store retail locations.
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#Afterpay #APT #APTstock #Business #Makemoney
Artist Attribution Music By: "After The Fall" Track Name: "Winter Lights" Published by: Chill Out Records - Source: goo.gl/fh3rEJ Official After The Fall RU-vid Channel Below www.youtube.co.... License: Creative Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0) Full license here: creativecommon...
None of this material is meant to be construed as investment advice, it's for entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.

Опубликовано:

8 сен 2024

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Комментарии : 113

@SageFinance 3 года назад

See how other big companies make money here: ru-vid.com/group/PLmTmkTBCiauJNF8J7iTHDOGutI-WE0D2T

@calebbird445 3 года назад

I like the idea of afterpay to stop banks profiting so heavily on high interest credit cards and personal loans. I like the idea of a financial system that benifits the consumer, not the bank.

@SageFinance 3 года назад

Yes totally agree! The banks make a disgusting amount of money from peoples credit cards and it’s good to have an alternative. Thanks for watching 🙂 Really appreciate the support!

@gfuentes8449 3 года назад

Huh? They're lending money so what's the difference to a bank? Also they are lying about their mission from the outset, which is "to encourage responsible spending" when it should really say "to profit from the 5-10% of problem borrowers"

@cubnation 2 года назад

@@gfuentes8449 *EXACTLY!* 🎯🎯🎯

@GrowingFinancially 3 года назад

Wow, that's a great way to help people being able to buy without getting into bad debt. Great company idea. Thanks for sharing this great content 😀

@SageFinance 3 года назад

Yeah they’re market cap and share price went on a wild ride this year! Up 10X from the lows in March. Thanks for the support! 😃

@Josh92638 3 года назад

I’ve only used this a few times - seems alright just need to pay back on time

@SageFinance 3 года назад

I just use my credit card

@alinasir1932 3 года назад

i have used this service and quite happy as i paid my instalments on time and it helped me in time of need. 5 stars

@SageFinance 3 года назад

Great to hear your experience was good! 😁 Does it help you budget and plan paying it back easier?

@alinasir1932 3 года назад

@@SageFinance yes it helped a lot.

@SageFinance 3 года назад

@@alinasir1932 Awesome! 🙂

@user-ml6sg7le4z 3 года назад

By regulation you mean how the government can profit off of it smh... This would be great for purchasing cars. If you can pay the actual agreed on price without the high interest rates. That would be a game changer.

@SageFinance 3 года назад

👍

@personalfinance7265 3 года назад

Interesting, thanks for bringing this to my attention

@SageFinance 3 года назад

No worries! Thank you for the support 😃

@DisruptiveWealthCreation 3 года назад

Great analysis of this company

@SageFinance 3 года назад

Thanks 🙂 They’re quite popular with shoppers here in Australia and the US. Have you heard of them?

@DisruptiveWealthCreation 3 года назад

@@SageFinance No they are new to me.

@SageFinance 3 года назад

@@DisruptiveWealthCreation I don’t personally use it as I just save up cash to buy things or use my credit card to get some free points then pay it back straight away.

@TT-bh5fn 3 года назад

Interesting company

@SageFinance 3 года назад

Yeah Australia’s hot stock!

@abdullahe3674 3 года назад

Thank you for the video 😌 Question: so what /who are "afterpay" competition?

@SageFinance 3 года назад

There’s heaps of competition! 😂 The main ones are ZIP and Klarna. PayPal and banks are now trying to copy them so we’ll see how they go. Do you use Afterpay?

@cubnation 2 года назад

@@SageFinance I just closed my account. I don't like Afterpay.

@SageFinance 2 года назад

@@cubnation yeah I don’t see the point to it either. Prefer my credit card

@cubnation 2 года назад

@@SageFinance Well, Afterpay actually penalizes people who pay on time, but don't keep spending! 🤷🏼‍♀️🤷🏼‍♀️

@SageFinance 2 года назад

@@cubnation Yeah I’m not using afterpay - seems to encourage useless consumer spending. I’d rather invest the money and make more 😁

@janehansen5628 3 года назад

I’m an afterpay shopaholic - guilty 😂

@SageFinance 3 года назад

They do have a lot of users who love it :)

@estrangeiros-sobvivendo7733 3 года назад

great content !!!

@SageFinance 3 года назад

Thanks! Don’t forget to subscribe to help out the channel and check out some other videos 🙂

@rahulsood3412 3 года назад

Does Afterpay retains the credit risk on its books or is the credit risk moved over the merchants ?

@SageFinance 3 года назад

It goes to Afterpay 🙂

@rahulsood3412 3 года назад

@@SageFinance Now that Square has announced its intent to Acquire Afterpay and given that Square has banking license in US (Perhaps will try to get it in other countries), I think Square will try to pass on the credit risk by selling these 'afterpay loans' to Institutional investors (As it currently does with bulk of loans it gave to merchants). So while I continue to like what Square & Afterpay will do together, I just cant get around the 156 BUSD valuation for combined company specially that balance sheet already has convertible debt as well as normal debt.

@SageFinance 3 года назад

@@rahulsood3412 Afterpay is already in the US - I’m actually glad square is buying this company and removing it from our Aussie index. Overpriced company that isn’t doing anything groundbreaking, anyone can copy it easily and is putting people into debt that they don’t need for consumerism crap.

@bemed738 2 года назад

I have one question. Where does Afterpay get the money to pay the merchant upfront?

@SageFinance 2 года назад

They would pay themselves and take on the credit risk whether through their own cash or credit sources. So merchants get paid straight away and Afterpay customers pay back Afterpay.

@bemed738 2 года назад

@@SageFinance okaay thanks!! So do I understand that right that Afterpay goes to the bank and gets a loan to pay the merchant? So not the consumer but afterpay gets a loan with interest?

@SageFinance 2 года назад

@@bemed738 Yeah they would either use cash on their balance sheet or short term low interest debt they get from somewhere. Then they have all the credit risk whilst the customer pays them back. That’s why they stop lending people money who don’t reliably pay them back 👍

@bemed738 2 года назад

@@SageFinance thank you so much for the answers!

@SageFinance 6 месяцев назад

No worries 🙂

@LaymanGamin 10 месяцев назад

There’s definitely more there getting out of this . Like maybe our info or data

@SageFinance 9 месяцев назад

Yeah people’s spending habits that they could sell to companies to adjust what products they sell perhaps.

@Dandelunar Год назад

Where can I create a platform like that one? Any idea of developers?

@SageFinance Год назад

Like what?

@Dandelunar Год назад

@@SageFinance like afterpay

@SageFinance 4 месяца назад

Do you want to make your own BNPL app?

@vproduction 2 года назад

So. They are a middleman that takes a cut from retailer. A whopping 6%.. so does retailers pass on the expenses???

@SageFinance 2 года назад

Yeah they may likely raise prices to compensate as they’re not a charity

@stevepalmer7815 3 года назад

nice one!

@SageFinance 3 года назад

Thanks 😊

@robynleutenmayr3495 3 года назад

I got signed up to this to buy groceries with but can’t seem to

@SageFinance 3 года назад

Yeah it all depends on if the merchant you’re buying from accepts Afterpay. Normally supermarket grocers don’t use Afterpay - I haven’t personally seen it myself but it’s used a lot for retail shopping 🙂 What was the supermarket you were using?

@NeonblueIndustries 2 года назад

19.5 mil loss.... yeh, it's alright it's just part of the business life cycle. Awesome, I'm sure that is a valid a acceptable reason for share holders.

@SageFinance 2 года назад

Yeah not a fan of Afterpay as an investment. Glad square is buying it and it’s coming off the Aussie index.

@Vxneji Год назад

So if theyre not profitable how come their founders a multi millionaire ? how is this debt being covered?

@SageFinance Год назад

Just keep doing capital raises with angel investors or shareholders when they go public - unprofitable companies can still be stupidly valued by public opinion. Just look at the craziness of 2020 and 2021 spec stocks. The owner will own the most shares so it’s easy for them to become a billionaire it the company gets valued that way.

@peerlessstrategies Год назад

Repetitive info.. I wish the video was broken up into segments so I could skip ahead. I just want to know how much it charges the business owner...

@letstrythis1190 3 года назад

I have one doubt. If i buy a product for 1000$ using afterpay and paid $250 only. Then what afterpay do? Is it affect my credit score?

@SageFinance 3 года назад

Yeah you’ll pay $250 at the store when you buy then $250 every 2 weeks after that until it’s paid off. Afterpay doesn’t affect your credit score from the research I’ve done 🙂 Do you use Afterpay much?

@letstrythis1190 3 года назад

@@SageFinance no i'm not in Australia. I don't have access to it.

@SageFinance 3 года назад

@@letstrythis1190 It’s in the US and UK as well. Whereabouts are you from?

@letstrythis1190 3 года назад

@@SageFinance I'm from india

@SageFinance 3 года назад

@@letstrythis1190 square is acquiring Afterpay. Is cash app in India?

@gfuentes8449 3 года назад

So basically a credit card on demand. Don't see how they got the media to jump on this and promote it but they did.

@SageFinance 3 года назад

Yeah I don’t see the point to this system either. I don’t use it but apparently it helps people budget and plan their spending 🙄

@gfuentes8449 3 года назад

Black people are 1.4% of popuation in Aus, how come they appear so prominently in this ad?

@SageFinance 3 года назад

🤷‍♂️

@gertrudeday4862 2 года назад

another credit card?

@SageFinance 2 года назад

Kind of

@fredjefferson195 3 года назад

The credit risk is an issue for me with this company

@SageFinance 3 года назад

It seems as though they limit high lending to proven people who can pay it back so that’s a plus 👍

@jasonbrown2080 3 года назад

I’m torn between using this instead of just paying on credit card. Seems like an extra unnecessary step to me 😬

@janehansen5628 3 года назад

They don’t charge interest and I like paying back in small allotments 😀

@jasonbrown2080 3 года назад

@@janehansen5628 but you could just pay back the credit card whenever you want before the monthly interest date 🤷‍♂️

@SageFinance 3 года назад

I just use apple pay or paywave the credit card. It seems inconvinient to have to get an app out at the checkout. The online store would be useful it seems :)

@gu3sswh075 2 года назад

@@jasonbrown2080 but then you have to pay the full amount within 1 month (before interest begins) OR pay the minimum payment for every month WITH INTEREST. How is a credit card better?

@felicitygill5103 3 года назад

SO many of these buy now pay later apps

@SageFinance 3 года назад

Yeah way too many

@alphatango2967 3 года назад

I think afterpay as a product is pretty useless

@SageFinance 3 года назад

Yeah a lot of people are one way or the other

@HameedUnfiltered 3 года назад

@alpha tango why do you feel so?

@alphatango2967 3 года назад

@@HameedUnfiltered just use a debit card or cash. If you don’t have the money to buy it you can’t afford it

@HimanshuKumar-xz5tk 3 года назад

Fair enough. Although, much better than credit card and for people having no credit card. Banks have been charging huge mount of money from people to use credit card. If implemented properly, we won't see any credit cards in the future.

@gu3sswh075 2 года назад

@@alphatango2967 yes but what if its something expensive that lasts a while. If you spend 1000 on a laptop that lasts for 5 years, you paid about 83 per month (12m) or 41.67 for 24m. It's much easier for people who don't have 1000 cash

@aparvkishnov4595 2 года назад

Party is over. Shareprice dropped.

@SageFinance 2 года назад

Haha yep it’s basically trading inline with square/block now after the takeover. I never owned stock in Afterpay - never really had much of a competitive advantage.

@markross1471 3 года назад

Seems very overrated

@SageFinance 3 года назад

I don’t really see the point of it to be honest

@kyefang8278 3 года назад

This appears to be another poisonous financial derivative service. Certainly credit risk is very high. I can't believe the watchdogs of all these western countries turn blind on such a loophole taker. I believe the shareholders most likely will end up with tears. If there is a credit rating, this company must be Z- - -.

@SageFinance 3 года назад

Yeah I agree mate - I’ve always just saved up my money then bought the item. I don’t like going into debt especially on consumer goods! People might get carried away with this and keep spending 😬