Regarding how interest rates relate to the risk vs. reward balance: “When you find a way to trust people in the right environment, you end up realizing very quickly that the cost of mistrust is significantly greater than its value.”Anthony Eisen
Anthony Eisen launched Afterpay in 2014 with Nick Molnar after working at Guinness Peat Group for several years where he was CIO. Eisen was involved in many companies within Guinness’ portfolio, which gave him experience in building and running companies. Before that, he did Investment Banking and M&A, which gave him a strong understanding of financials, upon which he founded Afterpay. He was also previously a director of Onthehouse Holdings Limited, eServGlobal Limited, Turners & Growers Limited, MMC Contrarian Limited, ClearView Wealth Limited, Tower Australia Limited (Alternate), and Capral Limited.
Afterpay was launched in 2014 to address the issue that people do not always have the full amount of money to purchase an item. Afterpay created a platform that would allow retailers to allow online lay by. In 2017, the company introduced the Afterpay app and had a merger with Touchcorp technology. Their business allows customers to be able to “buy now” and “pay later” in segments with no interest charged. The Touch System Platform includes services like fraud protection, analysis of payments, and regular compliance. Both retailers and consumers benefit from this innovation. Consumers get to pay in segments and can therefore afford more expensive products and the retailer benefits with the consumers buying at a higher frequency.
Afterpay was the premiere company to introduce the ‘buy now, pay later’ concept which has now added a new dynamic to retail. A major driver for this change is the decreasing use of credit cards. Afterpay’s disruption to the traditional credit card landscape has resulted in a significant share of millennials using their credit card lesser because of Afterpay.