Australian (ASX) Stock Market Forum

APT - Afterpay Limited

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Alternatively, buy both like a TOTAL degenerate ;)
 
What is the long term play with the BNPL model? I missed out when I should have bought, but Im still wary as to where it is all going.
Are the banks going to buy them out, are they going to keep losing money, are they going to be regulated, are they going to disappear?
 
They'll keep going the way they are until something bad happens and hits the news and then the government will have the exact excuse they need to step in and regulate in some way that benefits their political donors.

It's legacy media vs social media but with lines of credit.
 
APT's been on a nice rebound lately:

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And now expanding, good interview on the news this morning:

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Credit cards appear to be a dead business.
 
$39 Billion takeover

Square, which trades at a market capitalisation of $US115 billion in New York, will set up a secondary listing on the Australian Securities Exchange. This will allow Afterpay shareholders to trade Square shares via CHESS Depositary Interests (CDIs) on ASX and Afterpay shareholders will be able to elect to receive NYSE-listed Square shares or CDIs.

“Square and Afterpay have a shared purpose. We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles,” Mr Dorsey said in a statement, before tweeting about the deal.
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Square has 70 million customers, compared to Afterpay’s 16 million. Square will use Afterpay to boost its merchant and retailing system, and its Cash App. Afterpay will be integrated into Square’s merchant platform and it will also become part of the Square Cash App, allowing Square to better compete with the likes of PayPal, Affirm and Klarna in the United States.
 
So was anyone silly enough to pick this for the stock picking comp?

Off to a good start if so :p
 
mark_au said:
is it time to cash out now or wait the merger ?. Will changing the ownership to the USA complicate our taxation reporting going forward ?
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The CDIs will be ASX listed and report in local currency. (Holders will have to elect )
 
I have owned apt with the systems but was not recently...damned
If you can trade it on the asx before the conversion, it is usually easier just to avoid paperwork, and that laziness is usually not too expensive.. plus you get your cash back and can trade immediately or buy a bottle of Pinot noir to celebrate....
 
Interesting article concerning afterpay and the BNPL sector, thought provoking, to say the least.
The very reason they had the royal commission, into unconscionable lending to customers, appears to be repeating IMO.
www.smh.com.au

Afterpay takeover highlights the need to rethink financial regulation

Fintechs aren’t banks and aren’t regulated like banks. But they are increasingly offering a range of services and products that look like - and compete with - banking services and products.
www.smh.com.au www.smh.com.au
From the article:
Fintechs, even the big ones, aren’t banks and aren’t regulated like banks. But they are increasingly offering a range of services and products that look like, and compete with, banking services and products.
Regulators around the world have generally encouraged the emergence of fintechs to generate competition to traditional lenders and drive consumer-friendly innovation even as they have loaded ever more and ever more costly prudential regulation and obligations on the banks, such as stringent anti-money-laundering laws.
The BIS paper notes that the big tech firms entering financial services have the capacity to scale up very rapidly because of their existing hoards of customer data from their non-financial e-commerce or social media activities and by harnessing their inherent network effects in digital services.
The big techs have provoked intense debate and looming regulation on competition and data privacy issues around the world – in the US they even face the threat of break-ups – but financial regulators are still trying to get their minds around the balance between the pro-competitive force they represent against banks and other traditional institutions and the risks they might pose to system stability, fair competition and the long-term interests of consumers.

In addition to traditional regulators’ concerns – financial risks, consumer protection and operational resilience – the entry of big techs into financial services created new challenges around the concentration of market power and data governance, the paper warned.
One of the core issues banking and competition regulators confront in trying to determine how to respond to the rise of the fintechs is the asymmetry of regulation, particularly as it relates to data.

Australian banks, and banks in some other jurisdictions, now operate in “open banking” regimes where they are required to provide access to their customer data and customers can more easily move their accounts. But tech companies, a number of who are larger than any bank, don’t have to provide access to their data and their customers are effectively locked into their networks.

Most non-banks, regardless of size, generally face activities-based regulation, where they might be required to hold a licence for highly specific business lines, if indeed any licence is required.

Banks and other big regulated institutions faced both activities-based regulation and entity-based, or whole-of-company, regulation to try to ensure that the aggregation of their activities doesn’t pose risks to financial stability, competition, consumer protection, money-laundering and other public policy objectives.
 
@sptrawler That is exactly why the BNPL sector has been on a tear (ripper or lachrymal ?). Little regulation, exploiting a vulnerability.

But I have to give it to the convergence of fintech possibility and pushback on smug credit arrangements.

I had the thought, when looking at all the new pile-ins trying to emulate APT, if only they had been really really smart in 2017 or whenever, when they examined the disruptor model and said "We can do this, as well (and maybe better)", and just put their money on APT at $2 to $4 way back when or even $6 by 2018, then they would probably have made more money than through their start-ups now flooding the space?

(But winner take all and creative destruction doesn't work this way)
 
Dona Ferentes said:
@sptrawler That is exactly why the BNPL sector has been on a tear (ripper or lachrymal ?). Little regulation, exploiting a vulnerability.

But I have to give it to the convergence of fintech possibility and pushback on smug credit arrangements.

I had the thought, when looking at all the new pile-ins trying to emulate APT, if only they had been really really smart in 2017 or whenever, when they examined the disruptor model and said "We can do this, as well (and maybe better)", and just put their money on APT at $2 to $4 way back when or even $6 by 2018, then they would probably have made more money than through their start-ups now flooding the space?

(But winner take all and creative destruction doesn't work this way)
Click to expand...
I was keen on APT when the pick the winner thread started on ASF, also my daughter who always has hated credit and paid for everything cash, told me she was using it.
Well long story short, that same daughter one year on is struggling to pay her bills, I told her to stop using APT as it is just encouraging her to spend next weeks pay. She has stopped and is starting to get on top of her bills again, but it is just a credit card, by another name IMO.
 
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