Afterpay: How this 30-year-old became Australia’s youngest self-made billionaire | CNBC Make It
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- Опубліковано 26 чер 2024
- 30-year-old Australian entrepreneur Nick Molnar is credited with reinventing the spending habits of millions of millennials with his “buy now, pay later” payment platform. CNBC Make It’s Karen Gilchrist spoke to the Afterpay founder to hear how the pandemic turned him into a multibillionaire.
Disclaimer: Some of this footage was shot prior to the pandemic.
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If you can't afford buying a consumer product => Don't buy it!
People love borrowing bro.
Common sense right? Common sense has gone out the window.
Exactly...its not that easy .
I absolutely agree with you!
Spend now and paylater - This is one of the bad things which millennials should not follow, it will only spur impulsive buying. I would suggest saving all money for a month and then decide whether you actually want to purchase that item or not!
What about the loan?
"Nick, a commerce graduate from the University of Sydney, noticed that young peoples' spending habits were changing. His theory, that young people have grown skeptical of traditional financial products like credit cards, which could lead to spiraling debt."
So instead of making a physical credit card, he just put it on an app. Damn, us young people are stupid.
Its like a credit card but worse. you have to pay every 2 weeks and are frozen out for missing 1 payment.
It's lay buy in app form. Except you get to take home the product? (Am I right on the last part?)
Not stupid. We don't care, we need everything that is trending or what is in vogue. We want it know, gimme that it's mine. Life isn't complicated, we have made it complicated. We live in a consumer environment, we consume on the go.
Look at the young population, it's humongous, and potentially leads to earn money for big and small businesses.
"Nick, a commerce graduate from the university of Sydney ,Noticed that young people s spending habits were changing..
@@indigowolf8712 Frozen out is good. Is not it ? It makes sure your debt does not increase.
They make over 25% of their profit on "late fees"
So basically this is worse than the average 17% APR on a credit card
@@Alex-bq8qd bit then again, young people don't think
@@Alex-bq8qd There's an overconfident emotional state when people are about to buy something.
They really want that item. Once they have it for a week, the luster wears down and they lose interest, and they're no longer in a rush to pay back.
AfterPay knows this, credit cards know this. It's why they will gladly lend
only smart people get this
LMAO Facts
This youths gettin finessed
These something principally wrong with our generation where we want everything now and no longer willing to save first and buy later. Anyways, more power to entrepreneurs like Nick!
In India this thing is in use from past 5 years called bajaj finance.
@@sachinreddybappa1273 those MFS are the worst company. And charge high interest and unnecessary charges too. 😡
This is every generation since the beginning of time wtf you sayin?
Apparently never went through the Dave Ramsey program.
This is normal, it's human nature man..nothing that has to do with this Generation.
Its just a credit card without the bank requirements.
And that in itself is amazing, it makes ALL the difference
Here in Mexico we have several stores where people can buy something and pay it week by week. Its huge here because its a way so that low income people can afford many things but in the end they are paying over 3 times the value of the product they bought just because the prize is differed in weekly payments
That's a different thing!
Wow he basically just made an app for layaway
Nice👌.. I never believed i could earn this big amount of money from forex trading
Precisely 😑
Very smart. We call it laybuy in Namibia.
@@toivomvula Same in Australia
Hey Nick "can you sell me your company I'll pay you in two years".
Lol😆
That had be great tho since you can also get to sell that company to someone else's at a much higher value like any big tech companies n then pay him off, you both will end up winning 50/50.......
Yes. Buy his stock on margin.
@@jmatt98 that wont help him anyway.....
😂🤔😹
I don't know who Needs to Hear This but " Greatness is often built when no one is watching ". So don't give up and keep going
This is an absolute brilliant innovative idea!!
The sceptics out there who say this has a vulnerability to shoppers to spend more then they have; should think of what the credit system does to the same group.
Nothing innovative here.. many compnaies around the world do the same service. He copy them , that's all..
Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time.
Yeah! I agree with you sir.
If you want to be successful have the mindset of the rich, spend less and invest More. Don't give up your dreams.
@@christophercook7170 People come here with the aim of chasing money more than knowledge and that will damage your progress, trust me. Chase knowledge first and I promise! The money will follow you just like it's following some of us now.
@@davidmike6847 That's very correct sir!!
And that is why most of them end up losing they money to scammers.
Don't be in a haste to invest. Know what and who you are investing to and be sure that the person will deliver before investing.
This is a great way to laybuying and getting straight away. Way more affordable and a more cost effective/cheaper than using a credit card. The only difference is making sure you can meet repayments and don't go overboard with your purchases
In India, people are using it from 5 years which is called Bajaj Finance..
Actually they have started operations in consumer durables back in 2011. I remember it because we purchased TV using bajaj finance and did some research on it.
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Govts will wholeheartedly welcome such platforms that allows people to get into even drowning debts to grab more taxes from all late fees, collection fees and legal fees to settle this in court.
Good job guys for supporting these so called futuristic and innovative debt traps.
Thank you for sharing!
This is pretty much a credit card without the idea of a “credit card”
Exactly what I was thinking
Yes.
But without the physical credit card, and without the retailer needing special hardware to handle the physical credit card.
This is normal in the front line of technology.
The big entrenched companies don't innovate.
Instead, an entrepreneur does the innovation.
The big companies then buy out the innovation and incorporate it into their business.
And/or downsize. Or die.
I mean...It's different.
So I think...pretending there's a world where you have to either have afterpay or a credit card, and you cannot have either.
The downside of a credit card is that you can keep spending past the point where you're no longer able to make your payments. The downside of afterpay is that if you miss a payment, you will be unable to make any necessary purchases until you repay that payment. And that can be difficult for some if their purchases have to be time sensitive.
Exactly its exactly the same thing wrapped up in another package and idiot millennials ate it up and made these two buffons billionaires, credit card companies just have to break down their monthly installments into less monthly and these guys are out of business, im buying puts way out ,they will be going down in a year or two let their steam fizzle
This has some ponzi scheme dynamics!
This is the digital form of Lay-Buy. The concept is not new, in Australia at least. Very clever reinvention.
Damn you would think this guy is way older than 30 holy shit!!
He looks 50.
That's what been rich early means.
I don't believe he is 30
Me too I look older than my age
That's what hard work and facing lots of challenges does to one.
Is there any website like this in Canada?
let's see how this plays out in the next 5-10 years, we are now buying even more things we don't need...
He doesn't care. He's set for life now.
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No one in the earth is self made person, just another guy who likes to explore the society
Why do people think credit cards are bad? Credit cards offer amazing rewards if used correctly. Only buy something if you know you're going to pay it off.
Because the avg person generally lacks the self control to use them properly.
@@ahastar1141 exactly. It might because it doesn't feel like money. like holding a piece of plastic and buying something doesn't have same mental effect as spending cash or paying for it right then and there like a debit card. I started to use to responsibly and get the rewards points and all :)
@@ahastar1141 Exactly. This is the only reaaon credit card companies are able to exist and make a lot of money for them to be giving out these "amazing rewards". Lol.
@@revirdkcalb not exactly , they take a 1 percent cut from the retailer everytime the consumer makes a purchase .
@@sulizu0186 True.
All these financial services without background check is gonna promote impulse buying behavior among millennial. Young people are gonna be so indebted.
Such futuristic, much wow.
This is technically a toned down version of China's Ant Finance.
I don't understand how this is more appealing than a credit card.
@@andrewwoodward8563 little to none credit checking. That means even high school students can borrow money as long as they have a good debt paying record in the app.
@@andrewwoodward8563 interest free if u pay on time. So it's free credit.
@@ry8246 afterpay is locked to 18+
This isn’t a good thing for young people. Debt
Young people should understand the fact that.
Its a standard no cost Emi or zero interest emiservice that we have in india.
Dozens of banks and non banking financial services offer it.
I'm not rich and always pay via my debit card or paypal in full payment. I never pay anything in credit (by using this app or credit cards), always cash, because I won't spend on things I cannot afford. I have 0 debts at the moment, hopefully my income will suffice me so I don't need to have a debt later in the future.
Credit card is for building credit score. Helps with larger purchases mortgage, finance car, renting etc. If you're responsible with your money there's no real reason not to use one. It's simply an indicator of how trustworthy and reliable you are. At some point down the line it'll come in handy. Other perks include reimbursement, for example if you bought a plane ticket before covid, if you put it on the CC you call the CC company and get a refund, if you bought it on debit you'd be out of money and at best get a voucher from an airline.
Then don't download the app.
You can use credit cards for credit score and payback but you have to have that amount of money in your bank account
This is a beautiful story. I love it
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Support your opinion, generally I always look out for it to dump so I can purchase some more. Truly I believe it has come to stay.
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What's the idea behind bitcoin investment anyway? Cause I buy when it falls and sells when it rises.
@@johnmark3034 Bitcoin investment just like every other form of speculative investment where you trade commodities (in this case other cryptocurrencies) to determine which gains or losses against another in order to make profit, just like in forex trading.
It's just a credit card made to look cool instead of a scam like a traditional card.
So the only problem it meaningfully addresses is that of carrying a physical credit card.
I hate afterpay, literally a legal way to steal money from the poor and people trapped in consumerism.
@@Ken-nv2hl if people are that dumb to get into debt then let them,,,,, allow them to take responsibility for their choices.
@@Ken-nv2hl They do indeed cash in on this, however they ain't putting gun on people's head forcing them to buy. It's still the "poor" people's own responsibility.
@@revirdkcalb When they have families to take care of and cost the future of their children because of their poor choices due to mental health issues then it becomes a bigger issue. Just look at the gambling industry creating games specifically designed to to trigger addictive responses so you keep gambling. How much choice do we really have in this mind?
1.Look the routine life problems relevant to country.
2.Present the solution.
You are a billionaire
You are right tho in a way...
Presenting is 1%, noone realizes how hard it is to actually make things come to life.
That's where the real work happens, where they show their worth.
Just presenting the solution is enough?
There are a lot of things wrong within a given country. You try presenting the solution and getting anyone at all to pitch in to the idea
As a Brilliant young entrepreneur, ur marvellous platform with clear business blueprint boosts up country’s economy. Not to mention that a customer’s better looked after after all. It’s win win for both. I have a feeling that financial novice like me who defies the logic of flowing the money can possibly create the business ideas one day. Thanks for the business insight.
Here in zimbabwe we call it lay-by aka monthly payments instalments ...sooooo its not a new thing
Yea.. It's called layby everywhere in the world. A lot of places just forgot it existed or banned it for predatory loaning.
I guess this credit card mindset is predominantly Australia and US issue, while in Europe most of us tends to have debit cards and retailers are used to accepting both credit and debit cards as payment methods. And personally I was raised with the principal of not spending money I don’t have and learn to be smart with the money I have.
great idea!
Being a self bade billionaire sounds like a lot of hard work but very satisfying
I grew up poor. We either paid cash or with a money order. If we couldn't afford it, we didn't get it.
Same
The internet has created more impact in our life, financially, socially and otherwise, for the betterment of our lives.
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Trading has not been going well with me, I have invested a lot of time and failed, I trade on my own but each time i keep losing money.
Amazing
The most impressive thing they did is brand themselves as more like a debit card than a credit card. When in reality they are clearly issuing debt and charging merchants a much higher processing fee than credit card companies do. Plus their two week payment schedule means that you are still paying down the debt in a period so short that most credit card companies wouldn’t have charged you interest and many credit cards would give you some perks like points.
Why is Hermes and Louis Vuitton not on afterpay! Damn, I just wanted to get a birkin using afterpay lol.......
Lol 😂 me too
Proud of my fellow Australian's achievement! Many many congratulations!!!!
Australia is not in Middle East.
What happens to credit rating?
It's actually very catchy and addictive Idea. Consumer overspending is always in the best interest of business.
the credit card company i'm using also charge no interest rate.
Sounds even worse than credit card companies. Fooling young people into debt 💸 trap
He's not foolin anyone around ,jus see in this way, suppose you wanted to buy a ps5 and you have got to money then what would you do? Take loans from someone ryt and then pay off at a later date but this company allows you to buy that with have installments plans with free installment fees, doesn't sound beneficial to you? Or would still aim for the loans from your friend or relative???
they already addressed this in the video. You can't buy after one late payment and 90% of people pay on time. 87% of the company's revenue comes from the 4-6% fee they charge other companies. Next time, pay attention.
@@varunnaik7015 my bad bruh😅, think should have paid attention to when they read out the percentages and also those revenue stuffs.....
That's the spirit
So cool.
The thing people fail to recognize is-
More users on this platform = more consumer spending. Which is highly needed to revive the economy because of the pandemic.
Amazing to see FinTech out of Australia 🙌
U should be thinking about Fintech or Blockchain in India, lot of holes in system & lot of opportunities in time condensing frames 🔑
Crazy i was just doing an inventory using this service afterpay and spent $6k plus since 2018 use it responsibly
Genius 🙌🏼
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4-6% fees on the merchant? which will be transferred to the consumer eventually. The merchant probably increased the price of the item to absorb the fees.
Even if the consumer pays with cash, it will be the same price. :(
We have a similar thing in Kenya just that they don't call it late fees. It's just interest lol.
Nice video.
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@@thompsonadamas5060 You are right about that !
VRY INTERESTED
PEOPLE R MORE DEBT
TNX TO THIS KIND OF COMPANY
Hows this different from EMIs? Many retailers offer EMI purchases staggered as much as 12 months. And theyve been doing it for years.
He's got the classic rich guy smug smile.
I thought is something new.
There's already a company that does the same thing🤦🏿♂️
This is just a different form of a credit card without the benefits
How much does the retailer pay? What is the fee to join after pay?
“Reinventing the spending habits of millions of millennials” - sooooooo debt? Lmaoooo 😭.
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ok, in a way it's like a credit card with a credit limit of under $1000 though can someone please explain who is underwriting these purchases in case of mass defaults? I am pretty sure Afterpay wouldn't have that much of money to cover mass losses so, are there banks involved in this as well?
I don't know who needs to hear this you've got to stop saving invest some part of it if you really want financial freedom.
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His idea is not new. He just charges zero interest. Basically it is a free loan to consumers at the expense of business owners.
He didn't really transfer the risk or at least that is not what the business model is marketed
He is taking full risk of the amounts
Also remember that most of these goods cost 10 % or even less of their sale price . So if he gets them 25 % only they are already profiting where as in normal credit card you are starting from negative. This is the key to his business success on the side of stores. They want to sell more during the pandemic, even if it was "elegantly" discounted 75%.
aaaaaayyyy Karen respects the rich businessman lmao
Buy now - pay later is literally the definition of "credit". Late fees? This is no debit card.
Sana ol Nick Molnar
Isn’t this a credit card? What the hell is special??
Simplicity of the whole credit system. Also instead of blocking the amount in Credit EMI, I think they are just keeping it to pay it afterwards method.
I think it might have lax requirements for young generation to apply compare to credit cards in 'traditional' banking system.and it is much more easier by just download an app instead of filling all the forms, attach all the documents when applying for credit card ~~ my 2 cents..
@@fubao99975 lol. All businesses seem to be a minor tweak to the same formula. I still don’t get it. Credit cards are predatory and basically anybody can get one. I don’t know - I don’t get it.
@@shashank1630 no....you are wrong..there are still many people cannot get services from traditional banking..simply put it, can u apply credit card when you 15? not everyone can easily borrow loan and apply credit card from banks, this is one of the reason why Ant Group rake it in. You shall read more☀️
Hi school student can get a credit card and most college students have credit cards because today, they are offering them to anyone. At least a credit card you have a month before you have to pay anything on it this guy is only giving you a couple of weeks
This is just capital appreciation
This is a brilliant idea. Would love to see if this can be gamified.
I’d say the investors played the biggest role. I’d imagine you need huge capital to be paying merchants first in hopes the consumer pays you back or getting a profit from fees. Seems like a huge financial risk, I wonder what their balance sheet looks like.
Good point John
reinvented? It's a different form of credit card, with installments instead of a credit card form. He just modified it, and is getting idiots into trouble that cannot control their spending.
Why reinvent the wheel if something works? Later on u can 10x ur vision once you have capital to swing for fences ⚖️
No interest. 4 payments. It is better than a credit card.
The banking credit system makes it all worse and a simple idea like this made it so simple!
I believe it is like the credit card business
Yeah... with much friendlier use hahaha
Nice video
Like a credit card?
I need some finincial help in case nicknis interested. I live on aruba
30???? He looks 45!!!
So a well marketed credit card? Nice
Billionaires whose company still “hasn’t turned profit”. 😂
Loll..
@@milfex-lostex3984 bro u gotta learn English
@@milfex-lostex3984 he didn’t show he didn’t understand, he showed that he thought it was funny.
@@milfex-lostex3984 But this startup is 7 years old so your first point is invalid.
Airbnb, Uber, Tesla, Spotify, Pinterest, Snap, Square and many more STILL have not “Break even” yet.... So its really irrelevant
"Self made"?
Also the title: "The pandemic made..."
Ye right lmaoooo
The pandemic whose sole purpose is to strip everything the middle class had, including their freedoms, and to give total control to the elites in the banking and finance, so that 1984 and Agenda 21 can culminate.
@@gaganaggarwal7599 they will fail. This has to fail. They are beyond insane
They were doing very well before the pandemic
"Nick, a commerce graduate from the university of Sydney ,Noticed that young people s spending habits were changing..
How do they enforce that goods are paid for at the end
Most people got this, But now what did you use the money for... Did you invest it or spend it waiting for another season of unemployment..
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In India v are using similar thing Called bajaj finance from past 5 years.
Yet U don’t see holes for Blockchain & Fintech in systems 😏
@@surendrashekhawat4155 but Indians are cautious to cryptocurrency they have less trust on them and moreover USA has anti crypto hacking system vch India lacks.
@@sachinreddybappa1273 doesn’t matter. Blockchain & Fintech is the future. Here in Ireland banks were ignorant & didn’t innovate and today they’re struggling and in 5yrs + they will go out of business lol
Congratulations
what do you do with bad debts?
He looks way older than 30... take a look at 0:38. Either he's trying to change his image actively or he's got some kind of aging issue.
Credit card without interest ?
GOOD STONKS
What a great idea to invent