Max Levchin, cofounder of Affirm, asserts that consumers are financially capable, stating, "People are paying our bills well on time." He believes the economy's condition is better than public perception suggests.
Affirm's CEO points to a recent Adobe report indicating that U.S. online shopping increased by 7%, totaling $331.6 billion in early 2024, proving consumer spending is robust.
Levchin emphasizes the importance of ethical lending, stating, "The total number of late fees or compounding interest that we charged last quarter was zero." He believes not taking advantage of struggling consumers aligns with Affirm's mission.
Highlighting consumer behavior, Levchin notes that shoppers are "embracing more flexible ways to manage their budgets," as evidenced by a 12% year-over-year increase in buy now, pay later transactions.
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