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Re:Square to acquire Afterpay for $29B by riatin on Sunday August 01, 2021 @09:50PM (#28032090)
Afterpay aren't really a payments processor in the typical sense though, their business model is nothing short of genius tbh. They've set up a non-traditional 2-sided market connecting consumers + merchants, allow consumers to pay the MERCHANTS back over 4 installments and collect a 5% fee on the way through as well as any late fees (remember they're not taking on the risk here either)
Re:Square to acquire Afterpay for $29B by sjy on Monday August 02, 2021 @02:46AM (#28033588)
Afterpay bears the credit risk, not the merchants. Search for the keyword "net transaction loss": https://afterpay-corporate.yourcreative.com.au/wp-content/up...
Re:Square to acquire Afterpay for $29B by ec109685 on Monday August 02, 2021 @12:41AM (#28032958)
This feels similar to the United States credit card market where there’s a 3% fee paid for by the merchant and thus a lot of opportunities to “reward” customers, and an incentive to keep things status quo.