Shopping online at 2 a.m.? That’s a red flag for buy now, pay later lender Affirm
Publishing timestamp: 2024-02-16 14:14:13
Summary
Americans shopping online after midnight are more likely to make riskier transactions and default on loans, according to Affirm CFO. The fintech firm uses data on the time of day a consumer attempts a transaction to help determine loan approval. Late-night financial decisions are riskier, possibly due to factors like being inebriated or under financial stress. Affirm manages repayment risk by denying transactions or offering shorter-term loans. Credit card delinquencies at major U.S. banks have been climbing, while Affirm reported steady delinquencies on monthly loans.
Sentiment: MIXED
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Source: https://www.cnbc.com/2024/02/16/affirm-buy-now-pay-later-vendor-discusses-loans-delinquencies.html