On Wednesday, online credit service company Afterpay Holdings Limited (ASX: AFY) provided a business update for the quarter ended 31 December 2016. Afterpay reported retail sales of over $100 million for Q2 FY17, up over 145% from the previous quarter. The company said it has continued to experience strong growth in new retail merchant clients. We rate management highly and believe Afterpay can continue to capitalise on its first-mover advantage and the uniqueness of its offering. Shares in Afterpay closed up 12.5% for the week. We own Afterpay as a market-driven investment in WAM Capital and WAM Active.