Is There a Disincentive to Do Not Pay on Time?

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The company uses artificial intelligence to underwrite pretty much every loane. When pitching this model to investors, did they believe that that approach was good enough? The vast majority of people are going to pay us back if there's no late fees, right? And you don't, it's just a straight, you know, four payments. What's the disincentive to to does not pay on time? For one, if you're delinquent, you can't transact again. If you r what's inte industry is evocatively called a sloppy payer - which is someone who generally pays their bills, but are almost never on time.

After PayPal sold to eBay in 2002, Max Levchin could have relaxed on a beach for the rest of his life. But that’s not the kind of person he is. He isn’t happy unless he’s coming up with new ideas and building companies – so much so that he actually fell into a dark place after leaving PayPal. He didn’t fully find himself until years later, when he rediscovered his passion for the “hard, valuable, fun” problems of fintech. Now, Max runs another billion-dollar company: Affirm, a “buy now, pay later” service that’s transforming how we purchase things on credit. This is the second part of a two-part conversation with Max; to hear the story of PayPal, be sure to listen to part 1!

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