Afterpay says its offering remains "unique" as it prepares for the challenge of global credit card giant Visa entering the 'buy now, pay later' market.
"We expect instalments to become a foundational method of payment at checkout for both domestic and cross-border commerce payment transactions," said Sam Shrauger, Visa's head of of issuer and consumer solutions in a statement from the company last week.
Last week, Afterpay said Mr Eisen and Mr Molnar "remain fully committed to the business" and "do not intend to sell any further shares during the next financial year ". "Afterpay's competitive advantage is in its large customer base that is driving merchant demand. That is very hard to replicate and you can’t solve that with an API. Essentially Afterpay are a lead generation platform for retail merchants," said Mr Shamgar.With more than 80 per cent of Afterpay customers using debit cards, Mr Shamgar thinks there is more of a threat for ASX-listed rivals like Splitit which use existing credit card limits for instalment plans.