The Afterpay Touch Group Ltd (ASX: APT) share price fell 3.25% today, it was one of the worst performers in the ASX 200.

Afterpay Touch is the owner of the popular “buy now, pay later” app. As of 2018, Afterpay had over 2.5 million registered users worldwide, making it one of Australia’s true technology success stories.

Afterpay share price falls

According to the Reserve Bank of Australia (RBA), at the end of November 2018, there were 15.9 million credit card accounts. This is the lowest number going back to 2015.

A focus by retailers on offering Afterpay as a way to pay for products has led consumers choosing to go for its ‘interest-free’ method rather than using credit cards which can come with a high-interest rate if they aren’t paid off in full every month.

Since the start of 2019, the Afterpay share price has risen by 8.75% as investors become a little more confident about the global economy and Afterpay’s valuation.

However, some investors are worried falling house prices may lead to Afterpay customers struggling to pay off their balances.

Is the Afterpay share price a buy?

Some investors like Forager’s Steve Johnson have commented that Afterpay has a lot of success in the US built into its share price.

Afterpay has said that it has achieved more in the US in six months than what it managed to do in Australia in two years. Rask Media contributor Jack Magann recently wrote a detailed analysis of Afterpay here.

The US population is around 13 times that of Australia’s, so it’s clear there is a lot of potential if Afterpay can capture the wallets of American millennials like it has in Australia. Afterpay has been helped in this regard by celebrities like the Kardashians tweeting that Afterpay can be used to pay for their products.

Afterpay is an exciting business with plenty of potential, however, it has not yet reported any profit. In its 2018 financial year, the company reported a loss of $9 million.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).