Affirm's Levchin Says BNPL Risks Are 'Exaggerated'
Why do you think it is that so many customers are reporting that much stress on a broader scale, as the poll shows? I’m not sure I can speak to the industry, but obviously a firm is built on the idea of underwriting every single transaction, not charging lead fees, which is important not just because it’s such a nice thing to do for the customer. It’s also a fundamental alignment between US and the borrower. If the borrower does not pay us back, we cannot benefit like we will lose money if they don’t pay us as black and white as that. And so yes, we may be an outlier in a sense that our customers outperform relative to what sounds like a fairly. Dark sounding survey but also public. So our numbers are in plain sight at all times. We just printed our last quarter yesterday, our delinquencies were ever so slightly down year on year and sequentially it’s still point 2.3% as it’s been for quite some time and doing just fine. So I think the, you know rumors of BNP LS difficulties are greatly exaggerated from my point of view. Obviously can’t argue with survey data, I can’t argue with the Bloomberg story on the phantom debt which. Is. Basically mathematically inaccurate in its following sense. So vast majority of installment loans are reported to credit bureaus. We have been since the very beginning of our time as a company and in some loans in general are required to be reported and that’s what everybody does paying for is typically not reported. Apple just launched their furnishing. It’s great that they led the way. I think it’s a really healthy thing for the industry. We’ll certainly follow them. But generally speaking right now majority of paying for loans are not reported.