As interest rates rise and economic growth slows, Affirm, Afterpay, Zip, Klarna, and other BNPL services are beginning to see late payments or related losses
Wall Street Journal : Tweets: @sullycnbc , @matt_cochrane7 , @fedprom , and @hoofnagle Tweets: Brian Sullivan / @sullycnbc : Buy now, pay ... never? https://www.wsj.com/... https://twitter.com/... Matthew Cochrane / @matt_cochrane7 : BNPL worries: “Subprime consumers accounted for about 43% of shoppers who applied for payment plans or loans at retailers' checkout between the fourth quarter of 2019 and 2021 ... though they only made up about 15% of the U.S. adult population.” https://www.wsj.com/... @fedprom : Affirm, Afterpay and Klarna grew rapidly during the consumer-spending boom, but Investors have concerns as outlook looks cloudier Klarna reducing staff by 10% Affirm delinquencies doubled YoY https://www.wsj.com/... Chris Hoofnagle / @hoofnagle : Subprime + tech optimism = financial innovation “Subprime consumers accounted for about 43% of shoppers who applied for payment plans or loans at retailers' checkout ...though they only made up about 15% of the U.S. adult population.” https://www.wsj.com/...