Affirm CEO: Buy now pay later is a great product but still less than 10% of overall e-commerce

Kate Rooney joins us now along with a firm CEO, Max Levchin in San Francisco. Kate, thanks so much. Leslie. So Max, great to see you. Thanks for coming in today. Glad to be here. So Leslie set it up well. Phantom debt that was from a Wells Fargo report last week. You've pushed back on this phantom math. Tell us what you mean by that. This one is, is a head scratcher. So industry reporting, we're the only public one, but the rest of the companies are fairly well disclosive $50 billion. Of total originations last 12 months. These specifically your first to pain for which has the weighted average life of three weeks. That means money turns 17 * a year. That means the total outstanding right now of that 50 billion is 3 billion / 1100 billion, also known as 1.1 trillion of US credit card debt. And that gets you just under .3%. So the phantom debt is roughly equivalent to the calculation error on any given credit card related math. So the whole sort of a narrative of you know, there's just hidden pocket of the economy. Is just sloppy math, silly math, fear mongering, you know, whatever you want. So they're saying it sounds like their beef is not necessarily on the risk to the consumer buy now, pay later. It's what it means to the economy. They've talked about the the difficulty in forecasting consumer spending and really what it means for the Fed. Because I think there's this idea of Jay Powell going out raising rates at the fastest rate since Volcker and the consumer is still really strong. Is it sort of this invisibility cloak for the the consumer that they can avoid paying interest and the consumer is still strong? Is that the missing piece of the puzzle here for Jay Powell? You know, as much as I'd love to claim that the strength of the consumer is entirely due to our excellent work and by now pay later, we're still well South of a even a 10% of the overall e-commerce let alone economy. So I think binoculator is a great product. Avoiding paying interest is a good thing. Like generally speaking I think it's excellent that consumers are being smarter with their money and pushing their money to go as far as possible. But we are not yet the saving grace of Jay Powell. I think he's doing a fine job on his own. So firm is not the missing puzzle piece. You know we are a. Good piece. We do great things for consumers. We help them buy things and pay overtime with great degree of clarity and control. A lot of times they pay no interest. When they do pay interest, it's never compounding. There are no late fees, there's no deferred interest. We are the right alternative to credit cards, but we have an enormous amount of road to go like we we we are coming for that whole consumer $1.1 trillion balance, just going to take a couple of years.

OTHER NEWS

10 minutes ago

NDP accuses deputy Speaker of partisanship over Conservative party event

10 minutes ago

Is Victoria Beckham’s Diet Healthy? She Eats The 'Same Thing Every Day,' According To Her Husband David

10 minutes ago

Celtics News: Kristaps Porzingis Posts Injury Update as NBA Finals Near

10 minutes ago

Video: Bindi Irwin shares the sweet connection between her late father Steve and daughter Grace: 'The legacy continues'

10 minutes ago

How to watch Glastonbury 2024 from home as BBC announces the 'longest celebration of the festival yet'

10 minutes ago

Video: Khloe Kardashian faces backlash after saying she is 'exhausted' from raising two kids without a live-in nanny

10 minutes ago

Video: Bruno Tonioli is reduced to tears during Britain's Got Talent live semi-finals as Phoenix Boys wow with a moving performance

10 minutes ago

Kris Jenner makes a rare remark about her and Corey Gamble relationship as she discusses their 25-year age gap

10 minutes ago

Carabao Cup and Championship matches to be free-to-air next season after landmark deal

10 minutes ago

Hiker shares frustrating encounter with fellow hikers ignoring warning signs: 'This infuriates me'

10 minutes ago

Biden says Ukraine can use U.S. arms for limited strikes in Russia

10 minutes ago

Usher to Receive Lifetime Achievement Award at 2024 BET Awards

10 minutes ago

Borussia Dortmund vs Real Madrid lineups: Champions League final team news, predicted XIs, injuries

10 minutes ago

4 UK shares Fools think could be takeover targets

12 minutes ago

‘Ayuda por favor’: Taylor Swift tells workers multiple times to get water to fans in Spain

12 minutes ago

[Hybe-ADOR Clash] Min Hee-jin Claims 'Other Two Directors Should Not Be Dismissed Either'; HYBE Refutes

12 minutes ago

Sentencing, presidential race and more: What's next for Donald Trump after verdict

15 minutes ago

AOC gloats about Trump guilty verdict at Bronx town hall

17 minutes ago

Better Stock to Buy Now: Lululemon or Planet Fitness?

17 minutes ago

Costco beats quarterly revenue estimates on strong grocery demand

17 minutes ago

Why the USMNT must show up at Copa America 2024

17 minutes ago

Dollar General beats Q1 sales estimates on demand for pocket-friendly groceries

17 minutes ago

Uttarakhand becomes first state to provide dual-language books to its students

17 minutes ago

Is Trump going to jail? Ex-president's odds of lockup over his felony convictions are slim to none, legal experts say

17 minutes ago

DJT Stock Dives After Trump Found Guilty on All 34 Charges

17 minutes ago

Car hits, kills 5-year-old Wylie boy riding bicycle

17 minutes ago

'It's a disgrace': Trump's VP hopefuls come to his defense following conviction

17 minutes ago

Mets DFA Jorge López after post-ejection glove toss, saying he went 'over line'

20 minutes ago

What was Trump found guilty of? A closer look at the 34 felony charges

20 minutes ago

Donald Trump was convicted on felony charges. Will he go to prison?

20 minutes ago

Illinois budget includes $20M aimed at repairing cuts to sexual assault crisis services

21 minutes ago

‘Bluey’ Lands In First Place On Nielsen Streaming Charts; Tom Brady Roast Attracts Impressive Live Audience

21 minutes ago

Indicator Quiz: May Edition

23 minutes ago

How Gov. Abbott, other Texas leaders are reacting to historic Trump conviction

23 minutes ago

LIVE UPDATES: Former US president Donald Trump found guilty on all 34 felony counts in hush money trial

23 minutes ago

At Amarinder Singh’s citadel Patiala, Congress pulling out all stops to pip his wife Preneet Kaur, propel Dharamvira Gandhi

23 minutes ago

Real Madrid dealt major injury blow ahead of Champions League final

23 minutes ago

Senior Odisha cops face EC ire: Who are D S Kutey, Ashish Kumar Singh?

23 minutes ago

Pittsburgh Steelers’ Russell Wilson has wild take on impact of Justin Fields

23 minutes ago

'It Was Pretty High Risk': Leader of the World's Largest Architecture Firm Says Going 'Off Track' Led to Being a CEO