Afterpay can also develop customer

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Micro-segments and establish ways to price each segment according to risk profiles. Leveraging customer data to identify pricing arbitrage opportunities can boost the company’s loan portfolio. Offering high approval rates can play a significant role in increasing Afterpay’s profitability. The company can enhance underwriting by utilizing alternative data like rent and utility payments, mobile phone usage, bank account cash flow, and behavioral data.


It can also rely on traits from credit bureau data. In some market divisions compliance directors email lists like the elective healthcare and dental segment, Afterpay’s proprietors may want to offer between 75% and 85% approval rates to be a viable and successful player. The company should also focus on providing different types of installment lending products. Offering a single BNPL product is not a viable strategy. The company can consider flexible yet interest-generating long and short-term loans, no interest, no down, and same-as-cash products.


Each product has a different profitability potential. Offering customers a range of products can help Afterpay increase its profitability. Incorporating other banking products like investment and wealth generation tools, credit cards, and crypto can help the company achieve high profitability. Before cross-selling these products to its customers, Afterpay must first identify the desire and present its customers with a pre-selected offer through data collected via the customer’s usage habits.