The buy now pay later option has grown popular with consumers as it gives an alternative payment option rather than racking up credit card debt, which has ballooned to staggering figures. According to Adobe Analytics, the buy now, pay later (BNPL) plans accounted for $760 million in Black Friday purchases and $940 million in Cyber Monday purchases, a sizable jump compared to last year.
Affirm CFO Michael Linford to discuss the BNPL company’s insights into how consumers are using alternative payment options while facing debt risks.
“Because we approve every transaction, we’re able to look at the consumer’s financial health at the time they’re making a purchase and our approval or decline decisions — or our decisions that inform the level or type of product that we’re allowed to offer to a consumer — are informed by their ability to re-pay,” Linford says. “That’s a very different mode than a credit card where a line is established and consumers will experience stress or anything that happens in their life and still tap the credit card.”
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