Creativity and Entrepreneurship: Analysis of Afterpay and CEO Nicholas Molnar

This essay analyzes the activities of Nicholas Molnar, CEO of Afterpay, and explores the role of creativity and entrepreneurship in the success of the organization. It discusses the challenges faced by the entrepreneur, the use of creative ideas and collaboration, and the exploration of potential and actual customers. The essay also examines the staffing and structure of Afterpay after its rapid growth.

Running head: CREATIVITY AND ENTREPRENEURSHIP
CREATIVITY AND ENTREPRENEURSHIP
Name of the Student
Name of the University
Author Note

1CREATIVITY AND ENTREPRENEURSHIP
Introduction
As discussed by Adebayo et al. (2017), entrepreneurship can be defined as the process
that is implemented for the designing, starting and then running a business organization in a
successful manner. The entrepreneurs are mainly able to start a business that is quite small.
The individuals who have the ability to create the businesses are termed as entrepreneurs
(Brem, 2017). Entrepreneurship can also be defined as the willingness and capacity related to
proper development of the business ventures that are able to operate in the industry. The
entrepreneurship definition is mainly focussed on establishing and running the operations of
business operations in various industries (Audretsch & Caiazza, 2016).
The essay will be mainly based on the analysis of the activities that have been
performed by a particular entrepreneur in the ways by which business operations can be
continued. The entrepreneur who has been taken into consideration for study in the essay is
Nicholas Molnar, the CEO of Afterpay (Coulson-Thomas, 2017). The challenges that have
been faced by the entrepreneur in development of operations of the organization will also be
discussed in the essay in detail. The proper usage of creative ideas, collaboration and
imagination is a major part of the discussion related to the entrepreneur. The essay will also
provide details based on the analysis that has been made with respect to the potential and the
actual customers of Afterpay in the industry (Coulson-Thomas, 2017).
Afterpay Touch Group Limited is a financial technology based company of Australian
origin. The organization has its operations in the United Kingdom, New Zealand, Australia
and the United States. Afterpay and another organization named Touchcorp had merged their
operations in the year 2017 in order to develop the organization named Afterpay Touch
Group. The company has then emerged as a leader in terms of services that are provided
under the concept of “buy now pay later” (Afterpaytouch.com. 2019).

2CREATIVITY AND ENTREPRENEURSHIP
(a) Personal context, story, challenge, passion and skills
Nicholas Molnar and Anthony Eisen had together implemented the concept of “buy
now pay later” or BNPL in order to develop the concept of 'invest early, get paid later'. Nick
Molnar is an entrepreneur who has extensive experience in the industry of online retail. Nick
has established the operations of Afterpay along with Anthony Eisen in order to form the
innovative retail payments and become fastest growing fintech organization (Dino, 2015).
The organization mainly facilities commerce between the end-customers and the retail
merchants who are able to provide help based on retail purchases that are made by the
customers. Molnar had started his business operations by selling the jewellery and watches on
the website of eBay in Australia. The entrepreneur has been able to combine his business
operations with the innovative payment options that are offered to the customers in retail
purchase based industry (Dogan, 2015).
The operations of Afterpay has been recently launched in the United States with the
proper collaboration that is developed with the major brands and retailers who are a part of
the industry. The collaboration has also allowed the shoppers to purchase various products
based on the interest-free instalments. Molnar has been able to navigate change and
implement the various organizational processes with the support that is provided by the
customers. The buying habits of millennials have also been taken into consideration by
Molnar in order to manage the ways by which cashless facilities can be provided to them
(Dubina & Carayannis, 2016). The credit-free and cashless facilities are considered to be an
important aspect of the operations that have been developed by Afterpay. The launch of
Afterpay by Molnar was mainly based on the shift in payment methods that have been
developed in the millennials. The preferences of debit cards had increased and on the other
hand credit cards are not being used by the customers in an extensive manner. The
characteristics of millennial customers had been able to provide major levels of motivation to

3CREATIVITY AND ENTREPRENEURSHIP
Molnar to start a credit facility providing organization like Afterpay. Molnar had formed a
partnership with his neighbour in order to start the operations of Afterpay by providing credit
facilities to the customers (Elia et al., 2017).
(b) Original creative ideas, imagination and collaboration
The major ideas that have been provided by the CEO of Afterpay Nick Molnar was
based on the ways by which millennial customers can be tapped and fulfil their needs based
on payments that are to be made for the retail products. The CEO was quite sure that the
millennial customers will be interested in paying for the products with the help of instalment
and credit based facilities. The conversations that had been made by Molnar had been able to
depict that the millennials had an aversion towards the use of credit cards. The new
technologies that have been used by Afterpay are able to support the processes of the firm
(Faggian, Partridge & Malecki, 2017). The customers are also provided with an opportunity
to use the easy credit based facilities in order to purchase the products that they require. The
customer-centric services that are provided by Afterpay to the Millenials are also considered
to be major factors that is able to support the growth of the company. The concept related to
the operations of Afterpay is mainly based on the methods by which the company is able to
attract the millennial customers and to provide them with the major payment related options
(Kuratko, 2016).
Afterpay has been able to develop concept based on which the company pays to
retailers for various services and products and the customer has make the payments with the
help of equal instalments. Afterpay has mainly developed its operations with respect to the
concept that the customers need to have flexibility in the payment process so they are able to
purchase the desired products. Afterpay has been successful in attracting more than one
million customers and around 12000 retailers with the help of payment services that are

4CREATIVITY AND ENTREPRENEURSHIP
provide to them. The Millenials are considered to be the most vital part of the customer group
that is developed and maintained by the firm (Lehmann & Seitz, 2016). The constraints and
risks that are being faced by the Millenials based on purchasing of various products have
been taken into consideration by Afterpay in the process of development of payment options.
Around 15% of the total number of Australian Millenials belong to the age between 18 years
and 36 years. More than 90% of the customers of Afterpay have been able to depict high
levels of loyalty towards the organization and its services as well. The ways by which CEO
of Afterpay has been able to understand the needs of the consumers and has collaborated with
the employees are considered to be a major part of the success (Lerch et al., 2015).
(c) Ways of exploring the potential and the actual customers
The operations of Afterpay and the levels of growth of the organization has increased
quite fast in the last few years. The company had around 1000 customers three years back
along with a partnership that had been developed with 10 retailers. The forward planning of
Afterpay had been quite difficult and the firm had been able to achieve growth with the help
of proper analysis of the millennials and their choices as well. Customer service is also an
important operational component of the organization that has been able to support its
operations and forward planning process as well (Lu et al., 2016). The scaling up of the
infrastructure of Afterpay and improving the components of customer service are major
aspects that are able to ensure proper growth of the firm. The potential customers and existing
customers of the organization are taken into consideration by Afterpay in order to maintain
the growth and levels of profitability as well (Mazzarol & Reboud, 2017). The development
of an effective relationship with the customers is considered to be a major factor that has an
impact on the prototyping of the services and products of the organization as well. The actual
customers who are a part of the organization are also maintained with the support that is
provided by the services of Afterpay. The network that is formed by Afterpay is considered to

5CREATIVITY AND ENTREPRENEURSHIP
be quite self-fulfilling in nature. The growth of Afterpay starts like a snowball and the
organization has maintained its focus has been maintained on the levels of customer
satisfaction that are provided (Naik, 2017).
The lack of proper services that are expected from the banks in Australia has played a
key part in increasing the growth of Afterpay in the financial industry. The financial
relationships that are formed with the customers are mainly based on the trust levels that are
formed in an effective manner. The millennials are quite scared of falling in the debt based
trap that is developed for the various lifestyle purchases that are made by them. However, the
services that are provided by Afterpay have an impact on the ways by which the demands and
needs of the millennials can be fulfilled in an easy manner (Oktarina & Witiastuti, 2019). The
company has thereby conducted a detailed analysis based on the issues that are faced by
millennials and lack of proper purchases that are made by them as well. The new generation
of the financial services are considered to be an important part of the services and
opportunities that are offered to the customers. The operations of Afterpay are supported in a
huge manner by the technologies that are implemented by the organization in order of offer
the best levels of services to customers (Plucker, 2016). The mistrust that has been developed
among the millennials is an important aspect that has an impact on the growth of Afterpay in
the financial industry. The collaboration levels developed by Afterpay with the local
communities are a major part of the success that is gained by the organization. High levels of
accountability and simple rules that are formed by Afterpay are a major aspect related to the
methods by which the firm is able to uphold the profitability levels (Schaeffer, 2015).
Afterpay has been able to challenge the traditional methods of payment with the help
of various options that are offered to the customers. The statistics of RBA from the year 2016
had depicted that the two options that had been chosen by the Australia customers previously
were mainly card or cash. However, Afterpay has added another major option that has been

6CREATIVITY AND ENTREPRENEURSHIP
able to attract the Australian customers at the time of their retail purchases. The availability
of Afterpay based payment options in more than 10000 stores in New Zealand and Australia
is also a major factor that has an impact on the millennial customers of the organization in
different parts of the world (Oktarina & Witiastuti, 2019). Afterpay is also called by the name
of “modern day layby” as the organization has been able to develop a large customer base in
different parts of the country. The company has aimed at fulfilling the demands and needs of
the customers based on their retail purchases. Afterpay has developed a simple payment
solution with the help of proper analysis that has been made with respect to the buying
behaviour of millennials who were the potential customers (Lehmann & Seitz, 2016).
The variety of products that are offered to the customers with the help of partnerships
that have been developed by Afterpay are considered to be an important part of the success
that is gained by the organization. The credit facilities that are provided to the customers by
Afterpay are interest free and the customers are able to receive instalments on various
purchases without paying any extra amounts (Mazzarol & Reboud, 2017). Nick Molnar has
been successful in providing the best levels of services to customers with the support that is
provided by research done with respect to the customers and their needs. The millennials
have been potential customers of the organization and they are also able to develop maximum
percentage of the revenues that are gained by Afterpay from sales of the products offered by
retail partners (Lerch et al., 2015).
(d) Staffing and structure of the firm after growth
The staffs or employees of Afterpay have played the most significant role gaining
high revenues and development of proper services as well. The demands for payment services
of the organization have also led to the increase in number of partner organizations who
provide their services to the customers. The structure of operations of Afterpay has also been

7CREATIVITY AND ENTREPRENEURSHIP
influenced in a huge manner by the payment processing based methods in the organization.
The large organizations are already using the services of Afterpay in order to provide the
customers with financial services (Siemon et al., 2016). The organization has been able
maintain its operations in the financial industry with the support that is offered by the large
organizations and the small organizations as well. The integration of Afterpay with the
payment services of small organizations is an vital aspect that is related to the growth
experienced in the competitive financial industry of Australia (Vuong et al., 2016).
The organizational structure is also influenced in a huge manner by the proper
integration of various services that are offered by Afterpay with the various partner
organizations. The monthly budgets of customers have been maintained in an effective
manner with the help of proper integration of Afterpay services with the various partner
organizations. The staffing process that is developed by Afterpay has a major influence on
the services that are offered by the organization. The increase in trust levels of the customers
is considered to be a vital aspect that is based on the success that has been gained within a
short period of time (Zhang, 2016). The development of barcodes in order to make the
payments of Afterpay is a key factor that has been able to ensure the revenues that have been
gained by the firm. The seamless experiences that are gained by the customers of Afterpay
are supported by the services that are offered by the firm. The retailers and the shoppers of
the organization have the ability to maintain their trust levels with the proper collaboration
that is formed with the customers of the organization (Oktarina & Witiastuti, 2019). The
changes that have been experienced in the structure of Afterpay are mainly based on the
growth levels of the organization in the financial industry. The fast growth of Afterpay has an
impact on the structure of the firm and the number of employees who are a part of the
operations. The increase in number of retailers who are the partners of Afterpay also has an
influence on the structure and number of employees who are a part of the organization as

8CREATIVITY AND ENTREPRENEURSHIP
well. The enhancement of growth levels is able to increase the employees who are placed in
different positions in an organization like Afterpay. The number of partners of the
organization have a key influence on the requirement levels of employees in various positions
in Afterpay (Faggian, Partridge & Malecki, 2017).
(e) Evaluation of the perspective of value of systematic and social change
The changes that have taken place in the social order, social structure, social values,
traditions and the customs have an impact on the society, attitudes and standards that are
developed as well. Socialization is developed with the help of implementation of the various
social changes that have taken place in the society. The individuals who can be considered to
be active members of the society are able to become the target of changes implementation.
The members of a society and different organizations are also influenced in a huge manner by
the social changes (Naik, 2017). The social order that is developed within the organizations
faces many changes within a specific period of time. The society is guided by certain rules
and regulations and changes that take place in the external environment can have an impact
on the social changes and development of the firms as well. The changes that are
implemented as a part of the social based aspect are able to influence the operations of the
organizations and profitability levels that have been gained as well. The two major types of
social changes that are faced by the organizations include evolutionary changes and the
revolutionary social changes as well (Faggian, Partridge & Malecki, 2017).
Afterpay has been social changes in its operations with that has been termed as the
evolutionary social changes. The evolutionary changes are able to play a key part in the
appropriate growth of the processes of the firm based on changes that have taken place in the
external environment. Afterpay has faced major levels of changes due to the growth that has
been experienced by the organization in the last few years. The proper growth of Afterpay is

9CREATIVITY AND ENTREPRENEURSHIP
also based on the fulfilment of needs and desires of the consumers with the help of its
products and services (Mazzarol & Reboud, 2017).
Conclusion
The essay can be concluded by stating that an organization like Afterpay that has been
developed with the proper analysis of the demands of the millennials. The millennial
customers are able to influence the services that are developed and offered by Afterpay. The
CEO of Afterpay, Nick Molnar had been successful in understanding the ways by which
operations can be developed with respect to the needs of the millennials of Australia. The
CEO has been able to play a key part in the proper growth of Afterpay in the financial
industry. The trust levels of customer have been formed with the support that is offered by
the effective services of the firm. The strategies, perspectives and organizational structure of
Afterpay has been formed with respect to the changes that take place in the external
environment.

10CREATIVITY AND ENTREPRENEURSHIP
References
Adebayo, E. A., Olashebikan, A. T., Agumadu, M. A., Peter, A. O., Akinsulire, H. W., &
Ikumapayi, T. A. (2017). ANALYSIS OF THE ROLE OF CREATIVITY AND
INNOVATION IN ENTREPRENEURSHIP. Theme:“Entrepreneurship and the
Knowledge Economy”, 388.
Afr.com. (2019). How Afterpay's Nick Molnar taps into Millennials' spending habits and
wallets. Retrieved 1 September 2019, from
https://www.afr.com/work-and-careers/management/how-afterpays-nick-molnar-
tapped-millennials-aversion-to-credit-20180213-h0w1dz
Afterpaytouch.com. (2019). Afterpay Touch. Retrieved 2 September 2019, from
https://www.afterpaytouch.com/who-we-are
Audretsch, D., & Caiazza, R. (2016). Technology transfer and entrepreneurship: cross-
national analysis. The Journal of Technology Transfer, 41(6), 1247-1259.
Brem, A. (2017). Creativity and routine: Conceptual considerations on managing
organisational ambidexterity in entrepreneurial ventures. International Journal of
Entrepreneurship and Innovation Management, 21(3), 261-273.
Businessinsider.com.au. (2019). How the loss of trust in the banks is helping Afterpay
become enormously successful. Retrieved 1 September 2019, from
https://www.businessinsider.com.au/afterpay-success-fintech-secrets-millennials-
2018-10
Coulson-Thomas, C. (2017). Leadership for creativity, innovation and
entrepreneurship. Effective Executive, 20(2), 12-30.

11CREATIVITY AND ENTREPRENEURSHIP
Coulson-Thomas, C. (2017). Stimulating creativity, enabling innovation and supporting
entrepreneurship. Management Services, 2017(Summer), 26-29.
Dino, R. N. (2015). Crossing boundaries: Toward integrating creativity, innovation, and
entrepreneurship research through practice. Psychology of Aesthetics, Creativity, and
the Arts, 9(2), 139.
Dogan, N. (2015). The intersection of entrepreneurship and strategic management: strategic
entrepreneurship. Procedia-Social and behavioral sciences, 195, 1288-1294.
Dubina, I. N., & Carayannis, E. G. (2016). Creativity, Innovation, and Entrepreneurship
Across Cultures. Springer.
Elia, G., Li, X., Margherita, A., & Petti, C. (2017). Human-oriented corporate
entrepreneurship: An integrative framework of creativity and HRM
enablers. European Business Review, 29(4), 386-401.
Faggian, A., Partridge, M., & Malecki, E. J. (2017). Creating an environment for economic
growth: creativity, entrepreneurship or human capital?. International Journal of
Urban and Regional Research, 41(6), 997-1009.
Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Cengage Learning.
Lehmann, E. E., & Seitz, N. (2016). 6 Creativity and entrepreneurship. The Global
Management of Creativity, 97.
Lerch, C., Thai, M., Puhakka, V., & Burger-Helmchen, T. (2015). Re-examining creativity in
entrepreneurship(No. hal-02189749).
Lu, J., Hafenbrack, A. C., Maddux, W. W., Eastwick, P., & Galinsky, A. D. (2016). “Going
Out” of the Box: Depth of Intercultural Relationships Predicts Creativity, Workplace

12CREATIVITY AND ENTREPRENEURSHIP
Innovation, and Entrepreneurship. In Academy of Management Proceedings (Vol.
2016, No. 1, p. 12325). Briarcliff Manor, NY 10510: Academy of Management.
Mazzarol, T. W., & Reboud, S. (2017). Entrepreneurship and innovation. Tilde Publishing
and Distribution.
Naik, B. M. (2017). Enhancing Employability, Innovation, Entrepreneurship and Creativity in
ChangingWorld. Journal of Engineering Education Transformations, 30(4), 84-91.
Oktarina, N., & Witiastuti, R. (2019). THE DEVELOPMENT OF BUSINESS
CREATIVITY, BUSINESS SUPERIORITY, AND ENTREPRENEURSHIP
NETWORK TO IMPROVE BUSINESS PERFORMANCE. International Journal of
Business & Society, 20(2).
Plucker, J. A. (2016). Creativity and Innovation: Theory, Research, and Practice. Prufrock
Press Inc. PO Box 8813, Waco, TX 76714.
Schaeffer, V. (2015). Corporate entrepreneurship and creativity in large firms: the practice of
start-up contests. Journal of Innovation Economics Management, (3), 25-51.
Siemon, D., Narani, S. K., Ostermeier, K., & Robra-Bissantz, S. (2016). Creativity and
Entrepreneurship-The Role of Creativity Support Systems for Start-ups. In MCIS (p.
24).
Vuong, Q. H., Napier, N. K., Do, T. H., & Vuong, T. T. (2016). Creativity and
entrepreneurial efforts in an emerging economy. Business Creativity and the Creative
Economy, 2(1), 39-50.

13CREATIVITY AND ENTREPRENEURSHIP
Zhang, C. (2016, September). The Role of Creativity in Entrepreneurship. In 2016 4th
International Education, Economics, Social Science, Arts, Sports and Management
Engineering Conference (IEESASM 2016). Atlantis Press.

14CREATIVITY AND ENTREPRENEURSHIP
Footnotes