How does Afterpay make money?

Afterpay makes money off of merchant fees. These are fees paid by merchants to Afterpay. Users of Afterpay do not pay any interest or fees. Afterpay collects fees from merchants each time a transaction is accomplished on the platform and a fee for every item sold on the platform.

• Late payment fees (penalty fees)

Afterpay also uses an "account reactivation" fee, as well as a "rescheduling convenience" fee for consumers that don't make payments in the time required. This fee is $10, plus interest on the balance. Rescheduling convenience fees are applied whenever a user chooses to move the payment to a later date. In some cases it charges customers $15 for payment failure.