Afterpay US turns lender offering interest-bearing loans

Former ASX darling Afterpay has launched a product that charges US borrowers interest on loans in a dramatic shift for the Sydney fintech founded in 2014 on the premise it offered shoppers a superior alternative to credit cards.

“The new US-based product is simple, transparent, and enables responsible spending without the requirement to pay compounding interest – supporting our mission to power an economy in which everyone wins,” the spokesperson said. “When you look at what they’ve announced it’s more pointed to the credit card market than their prior loan products and is part of their longer-term vision for Cash App,” he said. “Now they’re going to try and deepen their relationship with those consumers through more traditional banking products. Originally, they did debit cards, they bought Afterpay to try and scale small consumer credit, and they always had a plan to go into deeper credit, including secured credit over time, like car loans.

“Linking our two ecosystems through Afterpay is the most compelling option we found in the market,” he told the November earnings call. “We believe this is a perfect blend of everything that we can offer to sellers, including a way for them to drive more sales and also new discovery and new opportunities for customers, which also helps them discover Square merchants and merchants around the world.

Source: News Formal (newsformal.com)

Who woulda thought interest free is not a sustainable business model in a non zero interest world 🤦‍♂️

What a shitshow 😬

Just three friends hanging out in the same room

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