This report provides a detailed analysis of Afterpay, a successful Australian fintech startup. It begins with an introduction to Afterpay's background, including its founding, merger with Touchcorp, and core business of providing installment payment services to customers. The report identifies Afterpay's three main customer segments: individual consumers (millennials), merchants (retailers), and small-medium enterprises. It then examines Afterpay's competitive advantages, such as its first-mover advantage and the 'try before you buy' approach. The report also discusses barriers to entry in the industry and evaluates Afterpay's business model using the Business Model Canvas. Finally, it highlights challenges faced by Afterpay, including customer retention, fraud risks, and regulatory issues, and provides recommendations for addressing these challenges, such as identity verification, credit score systems and security checks. The report concludes with a list of references used in the analysis.