Business Model Canvas of After Pay Report 2022

Running head: BUSINESS MODEL CANVAS OF AFTERPAY
BUSINESS MODEL CANVAS OF AFTERPAY
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BUSINESS MODEL CANVAS OF AFTERPAY1
Executive Summary
The report is mainly based on the detailed analysis of the business model canvas that has
been developed by Afterpay. The nine building blocks of the business model have been
analysed in the report in detail. The analysis is mainly based on the ways by which the
building blocks have supported the operations of Afterpay. The interrelationships that have
been formed by building blocks and critical success factors are also discussed in the report.
The risks that are faced by Afterpay in its operations in the financial industry have also been
analysed. The recommendations are mainly based on the future operations of Afterpay in the
industry.

BUSINESS MODEL CANVAS OF AFTERPAY2
Table of Contents
I. Introduction.................................................................................................................3
II. Business model..........................................................................................................3
A. Building blocks.........................................................................................................3
1. Customer segments................................................................................................3
2. Key partners...........................................................................................................3
3. Value proposition...................................................................................................4
4. Key activities..........................................................................................................4
5. Channels.................................................................................................................4
6. Revenue streams.....................................................................................................5
7. Cost structure.........................................................................................................5
8. Key resources.........................................................................................................5
9. Customer relationships...........................................................................................5
B. Interrelationships.......................................................................................................6
C. Critical success factors..............................................................................................6
D. Downside risks..........................................................................................................6
E. Business model changes............................................................................................7
III. Conclusion................................................................................................................7
IV. Recommendations....................................................................................................7
Appendices.....................................................................................................................9
Appendix 1 – Table 1 – Business model canvas........................................................9
Appendix 2 – Table 2 – Income statement...............................................................10
References....................................................................................................................11

BUSINESS MODEL CANVAS OF AFTERPAY3
I. Introduction
Afterpay is a digital service providing organization of Australian origin that mainly
provides support related to the purchase of retail products from different organizations with
the help of small instalments. The consumers are provided with the option to pay the money
within fourteen days of purchasing the product. Afterpay has been able to gain major levels o
popularity in the industry with help of services that are offered to the consumers. Afterpay
was founded in the year 2014 in Sydney and the company had changed the spending patterns
of customers in Australia (Afterpaytouch.com. 2020).
II. Business model
Afterpay has been able to form the business model with respect to the efficient and
effective services that are offered to consumers through small instalments that are related to
products which are purchased. The organization thereby aims at charging late fees based on
failure of the consumers to clear the instalments within the stipulated amount of time.
A. Building blocks
1. Customer segments
Customers segments of an organization like Afterpay mainly includes, the merchants,
various retailers, individual shoppers and business organizations as well. The organization
mainly tries to provide the payment related services to various customer segments with
respect to their demands and needs (Bekhradi, Yannou & Cluzel, 2016).
2. Key partners
The third party merchants, payment providers like Mastercard are considered to be the
key partners of Afterpay who are able to support the organization in proper improvement of
the services that are offered to the consumers. The banks and different other financial