Odd Lots Affirm's Max Levchin Breaks Down How Buy Now, Pay Later Really Works
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Dec 5, 2025 
Max Levchin, co-founder and CEO of Affirm, dives into the world of Buy Now, Pay Later (BNPL) solutions. He shares the motivation behind starting Affirm, focusing on transparency and zero fees. Levchin explains how Affirm uses innovative underwriting techniques that go beyond traditional credit scores. He also discusses how Affirm differentiates itself with higher approval rates and loyalty. With insights on AI and the future of payments, he offers a clear vision of an ideal financial system that's more aligned with consumer needs.
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Personal Credit Pain Sparked Affirm
- Max Levchin financed his first startup with an 18-year-old credit card and later suffered collectors and damaged credit.
- Years later he went public with PayPal but still got declined for a car loan, inspiring Affirm's founding.
Misaligned Incentives In Card Lending
- Credit cards profit from compounding interest and late fees, creating misaligned incentives with borrowers.
- Affirm built fixed plans without late fees so the company only profits when customers repay on time.
Design Loans With Transparency And No Late Fees
- Do design lending products with fixed, transparent repayment plans and no late fees to align incentives.
- That forces stricter underwriting and protects both borrower and lender from hidden costs.