To affirm has an advantage over competitors in the buy now, pay later (BNPL) space, and its data analytics approach is critical to the success of the company’s underwriting process, CFO Michael Linford said in a statement. press release online. fireside chat.
The shareholder webcast addressed a range of retail and institutional shareholder questions regarding Affirm’s strategy, products, business model and financial results.
See also: PYMNTS Intelligence: is consumer loyalty stronger towards merchants or towards the BNPL?
According to a Press release last week about the cat.
Using data, Affirm analyzes transactions beyond a person’s credit score and considers factors such as time of day and other seemingly insignificant details to determine risk.
Read more: BNPL transparency may be the missing link in customer loyalty
“We can spot the person who is least likely to pay better than anyone else,” Linford said.
He also pointed to the company’s sources of funding as another particular advantage Affirm has over its competitors. Instead of relying on a single source, it uses a combination of funding methods, combining on-balance sheet funding, securitization programs and forward flows capital partners.
This combination and the limited duration of its loans means Affirm has limited exposure, Linford said.
Related: Confirm debit card release with installment payment feature
From the company debit card+ is a new product that is expected to gain popularity in the next three to five years, Linford said. The company sees the card becoming “high-end” for consumers already.
The Debit+ card launched last October with a waitlist and offered consumers a way to pay for purchases between $100 and $1,000 in one to four installments at any store or e-commerce merchant. . The card is linked to a customer’s existing bank account.
You may also like: Is Apple Pay Later really a threat to Affirm and other BNPL providers?
Linford said the BNPL market will be huge and there won’t be just one player and one winner.
Apple’s move to BNPL, he said, is just another “data point on the inevitability of change” in consumer behavior and how payments are made. “In that aspect, it’s a good thing.”