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The business case for Personal Financial Management (PFM) — and MoneyDesktop (MD) specifically — continues to get better and better each year. As proof, we’ve gathered data from dozens of compelling sources. This data collectively answers three key questions:
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Retail Banking is facing challnges on many fronts. Leading banks must defend their positions through improved loyalty. this means investing wislyin technology and propositions designed to please customers.
Creating One Customer Journey Ecosystem that Meets All Banking NeedsCognizant
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More than 70% of consumers would consider switching banks for better reward services and 81% of consumers cite it as their top want. How can banks meet this demand? Read CGI’s recommendations in our bank consumer survey report http://bit.ly/1nvlQ6N
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- About current pace of adoption
- How you can optimize your mobile deposit customer experience
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development, acquisitions and research that provide disruptive
creativity and take a new approach (new business models) to solve
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as well as a prescription for navigating the current terrain. Our Customer Experience Index
proved to be an effective indicator of customer loyalty, which is an essential element of retaining and
attracting customers.
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- Completed for the course ADV4800 at the University of Florida
- The team for which I was the Group Lead/Account Executive won Best Strategic Plan
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1. Afterpay Touch Group Limited
ACN 618 280 649 Phone: 1300 100 729
Level 5, 406 Collins Street, Melbourne VIC 3000
1
AFTERPAY TOUCH GROUP LIMITED
(ASX: APT)
15 May 2018
U.S. Market Launch Commences
Key Appointments to Drive Global Expansion and Product Capabilities
Commitment to Customers and Continual Improvement
The Afterpay Touch Group announces launch in the U.S. market in May 2018 with Urban Outfitters,
Inc., one of the largest portfolio of consumer lifestyle brands based in the U.S.
Afterpay is pleased to announce that it will this week commence transacting in the United States in a
phased approach with a number of significant lifestyle retailers, providing U.S. customers with a new
way to pay and budget.
U.S. launch partners include Urban Outfitters, Inc. (URBN)*, whose brands include Anthropologie, Free
People and Urban Outfitters. URBN is one of the largest lifestyle fashion retailers in the U.S. with total
sales volume in the order of US$3bn across stores and digital channels in the US, which is broadly
equivalent to the size of the total Australian online fashion market.
Dave Hayne, Chief Digital Officer at URBN, says “We look forward to launching Afterpay across our
portfolio of brand websites in the US market. We have been impressed with the positive impact
Afterpay has brought to their Australian retail partners, and we hope to see a similar response with our
US customers.”
Early engagement has been positive across Afterpay’s initial target market with over 50 retailers having
signed contracts or term sheets which are in varying stages of integration. Pleasingly, partnerships
include a mix of well recognised U.S. based retailers as well as Australian retailers that have an overseas
presence, including:
▪ Morphe Cosmetics ▪ Quay Australia ▪ Loeffler Randall ▪ Margaux ▪ Lorna Jane
▪ Cotton On ▪ Showpo ▪ Princess Polly ▪ P.E. Nation ▪ Zanerobe
* Afterpay's contracts with retailers do not lock in any minimum sales volume. The URBN agreement is for a period of up to five
years with a minimum of two years.
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2. Afterpay Touch Group Limited
ACN 618 280 649 Phone: 1300 100 729
Level 5, 406 Collins Street, Melbourne VIC 3000
2
The U.S. Market Opportunity is Substantial
The size of the US market is substantial and represents a significant opportunity for Afterpay. Key
statistics include:
• In 2017, total U.S. retail sales were more than US$3,800bn, with over US$450bn purchased onlinei
,
which compares to the Australian online market of approximately US$18b
• The U.S. online fashion market alone is US$60bn compared with Australia of US$3.0bii
• More than 15% of the U.S. total fashion market is purchased onlineiii
• The millennial market in the US has a population of 63 million compared with Australia of 6 millioniv
• 67% of US people aged 18-29 do not own a credit cardv
As previously disclosed, Matrix Partners invested approximately $19.4m in Afterpay Touch in January
2018, with those funds earmarked to invest in the U.S. launch and market development strategy in the
first 12-month period. Matrix is a globally recognised venture capital firm based in Cambridge,
Massachusetts, with offices in San Francisco and Palo Alto, California. While this is currently considered
sufficient, Afterpay has a strong balance sheet with significant excess cash on hand and maintains
diversified funding sources (as illustrated by the recent successful $50 million bond issuance in April
2018).
Afterpay will commence in the US as an online only platform with an intention to introduce in-store
capability in due course. Initial transaction experience and learnings in relation to retail and customer
dynamics will be translated into a programme of product development specific to the U.S. market. To
effectively embark on this strategy, a U.S based team has been established with extensive skills across
relevant business functions. This team will leverage core global infrastructure and processes now
established in Australia with the benefit of applying strong local experience and capabilities.
Key U.S. Based Appointments
The partnership is progressing well with Afterpay Touch board member and General Partner of Matrix,
Dana Stalder, working closely with co-founder Nick Molnar who is leading the US market expansion. A
key area of collaboration with Matrix has related to identifying and accessing the best in-market talent.
Attracting great people to the Afterpay is fundamental to our success. We are pleased with the depth
and range of quality talent that continues to build our global team. Key senior U.S. based team members
have been hired to support both US market expansion as well as developing our global business and
product capabilities, including:
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3. Afterpay Touch Group Limited
ACN 618 280 649 Phone: 1300 100 729
Level 5, 406 Collins Street, Melbourne VIC 3000
3
Xin Ge – Xin joins Afterpay as the Global Chief Risk and Analytics officer. Xin's most recent role
was the Head of Risk Management at Uber, where he was responsible for Uber's global account
security, payment risk, marketplace fraud and abuse. Prior to Uber, Xin spent 14 years with eBay
and PayPal focusing on trust and safety and overall risk management. He was VP of Global Seller
Risk Management, Resolutions and Protections at PayPal and founder of the PayPal Global Risk
Management Centre in China.
Melissa Davis – Melissa joins Afterpay as the U.S. Chief Revenue Officer. Prior, Melissa was the
Executive Vice President and General Manager of ShopStyle, where over 9 years she built the
business into one of the largest fashion websites in the United States. ShopStyle works closely
with many of the largest fashion retailers in the country.
Akash Garg – Akash joins Afterpay as the U.S. CTO and VP of Product. Most recently, Akash was
the Director of Engineering at Uber, where he led the Driver and Mobile engineering
teams. Prior, Akash was Senior Director of Engineering for Twitter's Growth team from 2011-
2015, where his teams delivered tens of millions of active users to Twitter. He also co-founded
and developed a social networking site, hi5.com, that emerged as one of the largest social
networking sites in the world prior to its sale in 2011. Akash has experience scaling businesses
from early stage to platforms with millions of consumers and participants.
Commitment to Customers and Continual Improvement
We founded Afterpay as an innovative solution to a customer need through introducing a new approach
to budgeting for lifestyle purchases. Our origins were born from a recognition of the shortcomings of
traditional point of sale financing and payment methods. The Afterpay product was developed to
provide customers with a better alternative to traditional credit products.
Afterpay’s value proposition is clearly resonating. Over 1.8 million customers in Australia and New
Zealand have transacted with Afterpay, supported by over 14,000 enterprises and small to medium
businesses. Afterpay has scaled quickly in its relatively short history and it is clear that the vast majority
of customers use our service in the way it was intended – an effective budgeting tool, delivering a free
service to customers that want to split payment over a short period for discrete, non-major purchases.
As Afterpay assumes all customer non-payment risk and doesn’t allow customers to keep transacting if
they can’t make a payment, our business model only works if customers use the Afterpay product
responsibly and our systems and processes are therefore focussed on achieving this outcome. Afterpay
has maintained low default rates relative to all market comparators.
We are absolutely committed to encouraging responsible spending and eliminating, to the greatest
extent possible, misuse of the system. This is not just good for our business but reflects our core values
and popularity amongst a significant and growing percentage of the population.
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4. Afterpay Touch Group Limited
ACN 618 280 649 Phone: 1300 100 729
Level 5, 406 Collins Street, Melbourne VIC 3000
4
A number of product and system enhancements were recently announced. We look forward to updating
the market in due course on these initiatives and additional initiatives underway as part of our continual
commitment to responsible customer spending.
ENDS
For further information, contact:
Investors: Company: Media:
Anthony Eisen
Executive Chairman
e) ant@afterpay.com.au
Sophie Karzis
Company Secretary
t) 03 8622 3351
e) sk@ccounsel.com.au
Melissa Patch
Cato & Clegg
m) +61 412 124 195
e) melissa@catoandclegg.com
About Afterpay Touch Group
Afterpay Touch Group (ATG) is a technology driven payments company. ATG comprises the Afterpay and Touch products and
businesses. Afterpay is driving retail innovation by allowing leading retailers to offer a ‘buy now, receive now, pay later’
service that does not require end-customers to enter into a traditional loan or pay any upfront fees or interest to Afterpay.
Afterpay currently has over 1.8m customers and approximately 14,000 retail merchants on-boarded. Touch comprises
innovative digital payment businesses servicing major consumer facing organisations in the telecommunications, health and
convenience retail sectors in Australia and overseas.
Note: all Australian figures converted to USD at 0.75 USD/AUD
i Source: US Census Bureau, 2017 figures excluding motor vehicles
ii Source: Goldman Sachs, Australia Post – Inside Australia Online Shopping, 2017
iii Source: Goldman Sachs
iv Source: Goldman Sachs, US Census Bureau, ABS
v Source: Bankrate Money Pulse Survey, May 2016
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