Afterpay: Buy Now, Pay Later

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[00:02:52] - [First question] - What is Afterpay and what it does

[00:07:07] - Size and scope of Afterpay today

[00:08:27] - The founding story and their growth being such a young company

[00:12:11] - History of the buy now pay later industry

[00:13:34] - How their payment models tend to work and how these companies make money

[00:16:35] - Unit economics, transaction structure and how money is made

[00:21:44] - How Afterpay drives leads to people via their app and merchant aggregation

[00:23:39] - An early focus on fashion and expanding beyond their core clientele

[00:27:13] - Cost of sales and thoughts on taking more credit risk

[00:31:54] - Losses as a part of cost of sales and interest

[00:33:48] - Unique things that Afterpay can do given their business model that others can’t

[00:35:21] - Growth levers for this business 

[00:38:29] - Other major things they’re spending money on and their acquisition by Block

[00:44:28] - The competitive landscape in the BNPL industry

[00:47:54] - Afterpay’s flywheel and how they’ve built it better than others

[00:49:34] - Whether or not regulation plays a role in this space

[00:52:21] - What will have gone right in the next five years to ensure Afterpay’s growth curve

[00:55:01] - What will have happened if Afterpay’s growth doesn’t work out in the future

[00:56:31] - Whether or not interest rate risk could turn south for them

[00:57:30] - Lessons for investors, builders, and where to learn more about Afterpay’s story