ATP - blue sky growth opportunities

Thought I would put down a few points on where I think APT can add-value in future years, particularly in light of negative comments here and in some media regarding short-term low value credit.

--- Key to remember our target demographic is currently mostly millennials (historically), on lower/part-time incomes, who have a desire to make purchases of low value products (often in the lifestyle/fashion space). These are a demographic who, as they grow in their careers, will increase their incomes.

--- The majority of these opt for APT to manage cash flow -- not because they have a lack of income. Instead of paying $80 today (which from their part-time income, is a big singular hit), they'd prefer to pay $20 today, and then $20 each fortnight until paid off.

--- These $20 payments are mostly paid with debit cards - not credit. This implies the customers are paying with cash. I believe APT has a back-end process to: (a) keep lending values low until a track-record is built up; I presume this is automated with some sort of AI; (b) limit lending based on available funds accessible on the card (unsure how this is done, but presumably they try put an auth through for a few different values almost instantaneously to gauge what is available to draw (might try $1000, then $500, then $250, then $100, then $50). This I believe also limits the amount they can use APT for.

-- Allow various payment timelines/options. Perhaps this is aligned to size of the sale, but perhaps you could opt for 8 fortnightly payments for a family holiday on Jetstar - could add a small fee for the convenience of this. There could also be options to allow 2-3 payments only. More about this further

--- Merchants, in the future, will view APT as a marketing cost. With the widespread use of the platform, I feel APT may end up with merchants who feel the 4% is more akin marketing spend. APT could run targeted campaigns based on previous buyer activity. APT could offer targeted emails/push notifications to customers and could either increase or decrease the merchant fee depending on the structure of the campaign. (i.e.: APT could charge a retailer $50k for a weekend campaign, and take 3% comm over weekend.... or they could run the campaign for no up-front charge and take 6% of the weekend sales). Again, these are values that are used for indicative purposes, both the merchant and APT will have solid data on the historic buying of their customers and will be able to measure the success easily and reward both parties.

--- The immense database they have will be extremely powerful and valuable in future years. Similar to the point above, APT will end up with strong profiles on all their customers which can be leveraged, as much as within law and privacy policies, in future periods. For example, if someone has booked a Jetstar trip to Japan during their winter season, they could do a targeted campaign offering ski-gear or accommodation to that same customer. Data is big business these days, and being able to translate this data into actionable insights provides huge value to the APT model. Or perhaps APT has strong data that shows customers who purchase from X merchant, also purchase from Y merchant... thereby allowing them to have strong targeted campaigns (paid for by Y merchant) to X merchants customers.

--- APT as a conduit for loyalty. I have been thinking about possible ways APT could be integrated into either an existing, or a completely new, loyalty program with both merchants or APT directly. It could be a points earn based on spend through APT or it could be under the T&Cs of the merchants existing loyalty program (eliminating the costs associated with the management of that merchants program). Example: for on-time payments you get 10 credits, for a purchase of $100 you get 100 credits.... and then 1000 credits get you $5 off or similar - would need to look at the math around it.

--- APT to develop a model for up-front payment. Likely tied to the loyalty discussion above (as there would be no incentive to use otherwise); can APT be developed as a "tap and go" type competitor using cash for all transactions? APT could develop their technology to integrate with NFC and other developing techniques to facilitate contactless cash payments. I recognize this is deviating somewhat from the existing model, but if we incentiviced the customers in some way perhaps APT can become the one-stop shop for small credit/lay-buy purchases, tap and go payments, loyalty management; particularly given the move to mobile over wallet purchases.

The existing space is cluttered with many players (banks, Google, Apple, Loyalty Programs etc.) so perhaps we can be seen as an attractive asset in this space that creates LT SH value. If we went down this path, I can see an acquisition by a MC, Visa, Amex, Paypal or global bank.

My thoughts only. Mostly blue sky thoughts, but some ideas on the roadmap I would create if I sat within APT.

GLTA.