Why is Afterpay such a finanical powerhouse within 7 years?

By James Sheridan

Founded by Anthony Eisen and Nicholas Molnar in 2014 Molnar had the theory that "Millennials have a total aversion to credit cards, because they can lead to compounding debt." He joined forces with Eisen to create Afterpay, which instead of making its profits through compound interest, charges retailers a 4-6% fee to provide their 'service'. Late fees are charged if the consumer misses payment, but they are limited to 25% of the purchase. Afterpay keeps the 'system' simple, by breaking the purchase up into 4 equal payments over a short period of time. Molnar had to found the company by taking it public in 2016, and raising $25 million on the open market due to a lack of private investment.