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Ok so Square has opted to engage in predatory practices. Noted.

by treelovinhippie 5y ago

junon 5y ago
I'm completely out of the loop here but plan to integrate Stripe into a new product. Can you elaborate?
- SV_BubbleTime 5y ago
  I think he’s saying that these big entrenched players immediately buy up any competition or threats. Meaning this isn’t really any sort of free market, if you are so large you can absorb or destroy smaller entities ensuring that you will always be the leader in your market. And because governments have no teeth when it comes to monopolies or anti-competition this skates by world wide. That was my read, could be wrong.
- treelovinhippie 5y ago
  Afterpay is a buy now, pay later scheme. It's literally a loan shark service. 25% of their revenue comes from late fees. "The Australian Securities and Investments Commission found one in five buy now, pay later users is missing payments, half of users aged between 18 to 29 cut back on essential items to make repayments, and more than 1.1 million transactions in 2019 incurred multiple missed payment fees. It also warned 15 per cent of users, and half under 29, had taken out an additional loan to pay for the services, while 55 per cent of consumers paying late had used at least two different buy now, pay later providers in the past six months." https://www.afr.com/companies/financial-services/one-in-five-buy-now-pay-later-users-are-missing-payments-20201116-p56evk https://www.afr.com/companies/financial-services/one-in-five...
  - wonnage 5y ago
    How is a zero-interest payment plan loan shark-esque? Total late fees appear to be capped at the lesser of 25% or $68, which also seems less predatory than any credit card.
    - phist_mcgee 5y ago
      Because it is integrated POS, and is even more frictionless than credit. You don't need a credit check, you can sign up to many BNPL providers at once, and you are presented with options in store and online to buy with 'x' right now and not pay a cent. It drives impulsive spending behaviours. It is all bad.
- geofft 5y ago
  Stripe or Square? Visually similar words and in similar lines of business but definitely different companies.
- geoffpado 5y ago
  Other people have replied to the predatory practices thing, but additionally I'm not sure if it's a misread, typo, etc., but Stripe != Square.
  - junon 5y ago
    Oh right, seems I've been bitten by this yet again. Thank you.
version_five 5y ago
I see you have a few posts on this thread and are obviously not a fan. I had not heard of afterpay before this thread, but I checked them out and I agree they are a predatory lender. Some people obviously feel differently, but I don't see (other than a bit of nice branding) how they are different than Money Mart or Easy Home or anyone else that gives you money you don't have, but makes sure to collect it one way or another. Like I said elsewhere, people should be free to make their own choices, but this is certainly not a business model to be applauded.
- paxys 5y ago
  Does this also apply to Visa, Mastercard, Apple Pay? Giving out a loan is by itself not predatory. It's the interest rate and other collection practices which make it so. Afterpay looks to have basically the most consumer friendly terms in the industry right now, so I'm not sure what exactly classifies them as predatory?

Ok so Square has opted to engage in predatory practices. Noted.

junon 5y ago

I'm completely out of the loop here but plan to integrate Stripe into a new product. Can you elaborate?

SV_BubbleTime 5y ago
I think he’s saying that these big entrenched players immediately buy up any competition or threats. Meaning this isn’t really any sort of free market, if you are so large you can absorb or destroy smaller entities ensuring that you will always be the leader in your market. And because governments have no teeth when it comes to monopolies or anti-competition this skates by world wide. That was my read, could be wrong.
treelovinhippie 5y ago
Afterpay is a buy now, pay later scheme. It's literally a loan shark service. 25% of their revenue comes from late fees. "The Australian Securities and Investments Commission found one in five buy now, pay later users is missing payments, half of users aged between 18 to 29 cut back on essential items to make repayments, and more than 1.1 million transactions in 2019 incurred multiple missed payment fees. It also warned 15 per cent of users, and half under 29, had taken out an additional loan to pay for the services, while 55 per cent of consumers paying late had used at least two different buy now, pay later providers in the past six months." https://www.afr.com/companies/financial-services/one-in-five-buy-now-pay-later-users-are-missing-payments-20201116-p56evk https://www.afr.com/companies/financial-services/one-in-five...
- wonnage 5y ago
  How is a zero-interest payment plan loan shark-esque? Total late fees appear to be capped at the lesser of 25% or $68, which also seems less predatory than any credit card.
  - phist_mcgee 5y ago
    Because it is integrated POS, and is even more frictionless than credit. You don't need a credit check, you can sign up to many BNPL providers at once, and you are presented with options in store and online to buy with 'x' right now and not pay a cent. It drives impulsive spending behaviours. It is all bad.
geofft 5y ago
Stripe or Square? Visually similar words and in similar lines of business but definitely different companies.
geoffpado 5y ago
Other people have replied to the predatory practices thing, but additionally I'm not sure if it's a misread, typo, etc., but Stripe != Square.
- junon 5y ago
  Oh right, seems I've been bitten by this yet again. Thank you.

version_five 5y ago

I see you have a few posts on this thread and are obviously not a fan. I had not heard of afterpay before this thread, but I checked them out and I agree they are a predatory lender. Some people obviously feel differently, but I don't see (other than a bit of nice branding) how they are different than Money Mart or Easy Home or anyone else that gives you money you don't have, but makes sure to collect it one way or another. Like I said elsewhere, people should be free to make their own choices, but this is certainly not a business model to be applauded.

paxys 5y ago
Does this also apply to Visa, Mastercard, Apple Pay? Giving out a loan is by itself not predatory. It's the interest rate and other collection practices which make it so. Afterpay looks to have basically the most consumer friendly terms in the industry right now, so I'm not sure what exactly classifies them as predatory?