Bloomberg Talks
Affirm CEO Talks America's Credit Problem
Dec 7, 2023
Max Levchin, CEO of Affirm, discusses America's credit problem and the rise of buy now pay later as an alternative. They explore regional bank partnerships, risks, and the future of the industry. They also touch on the increasing credit card debt and the transformative power of AI.
23:36
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Quick takeaways
- Affirm aims to provide a more transparent option for consumers by offering Buy Now Pay Later as an alternative to credit cards.
- Affirm believes that credit cards have created a perpetual debt cycle and aims to help individuals make responsible financial decisions to avoid indefinite debt.
Deep dives
The rise of Buy Now Pay Later and its impact on credit cards
Buy Now Pay Later, or BNPL, has gained popularity as an alternative to credit cards. Affirm, a leading player in the BNPL space, aims to provide a better, more transparent option for consumers. With BNPL, customers pay for purchases in installments, without the high interest associated with credit cards. The use of BNPL has surged in recent years, attracting competition from PayPal and Apple. However, regulatory oversight has increased, with the Consumer Financial Protection Bureau (CFPB) expressing concerns about the model and its potential risks.
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