V - Is Visa Scared of Afterpay?
Afterpay (OTC: AFTPF) is a fascinating financial services firm from Australia. It has declared war on credit and credit cards because millennials don't like credit. Afterpay was founded by Nick Molnar, a millennial entrepreneur, who has focused on providing his generation tools to buy things. His solution? You afterpay it. (Yes, "afterpay" is a verb now.)
Say you want to buy a $2,000 item. You take it to the cashier. If the retailer is set up with Afterpay and the software approves the transaction, you can opt to only pay $500 upfront. Afterpay pays the other $1,500.
Now you owe Afterpay $1,500. You pay it back in three installments of $500, paid every two weeks. What's the interest on the loan? Zero -- although there will be a late fee if you are tardy with a payment.