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Afterpay comes to dentistry as Smiles Inclusive targets Millennials​

ASX-listed dentistry firm Smiles Inclusive has struck a deal with sharemarket darling Afterpay to offer the 'buy now, pay later' flexible payments scheme in its 52 dental practices in what its chief executive says is the first widespread roll-out in the health services sector.
Smiles Inclusive, which operates the Totally Smiles brands, expects it to trigger a jump in demand, particularly from Millennial customers who have embraced the Afterpay model in the retail sector with gusto.
More than 2.3 million Australians used the Afterpay service last year, where they buy the goods upfront and then use regular payment instalments to subsequently pay the full price.
Smiles Inclusive chief executive Mike Timoney said on Wednesday that it was part of a new approach to the $10 billion dental industry by the firm as it up-ends traditional models where customers had to fit in with an inflexible approach by many traditional dentists.

"We're just looking to disrupt the 65 per cent of Australians that don't go to the dentist regularly," Mr Timoney said.

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Smiles Inclusive listed on the ASX in late April after raising $35 million in a public float where the shares were issued at $1 each. The share price is currently sitting at $1.06.
Mr Timoney said internal research showed that many younger customers were holding off from regular visits and it was up to dental practices to make it much easier for them. "It's a combination of lethargy and money management".
"I think dentistry as a profession, has never made it easy".
He said four practices were currently trialling the Afterpay methods and by October 1 all of the Totally Smiles practices would be offering a full flexible and extended payment service via Afterpay.

"The sweet spot is the $400 to $600 bill," he said.
He predicted it would also trigger more demand for cosmetic dentistry, with the Millennials fixated on social media and good grooming.
"I think it will stimulate the cosmetic side of dentistry".
Mr Timoney said Afterpay had revolutionised the way customers thought about their spending patterns and it was logical to expand into a service like dentistry, which historically had been very rigid in its payment options and service delivery.

"Traditionally dentists have worked certain hours and then that's it, and it's like stuff the consumer," he said.
Afterpay shares are trading four times higher than they were a year ago. But the stock has slipped since soaring above $21 in late August. It is currently hovering around the $16.60 mark, after being at $4.25 in late September, 2017. The company has expanded into both the United Kingdom and United States markets.
Mr Timoney said Smiles Inclusive was negotiating to acquire further dental practices. "We've got a lot in the pipeline," he said.
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