Affirm's Users Are Falling Behind on Payments
There's no denying that buy now, pay later (BNPL) is a hot trend in the world of fintech. Kaleido Intelligence estimates that sales using this form of consumer spending will grow at an annual clip of 27% through 2025, facilitating a total of $258 billion worth of purchases by then. Finextra paints the compelling growth picture in a different way, suggesting BNPL's market share of total commerce will double between now and 2023.
This growth, however, may not be accounting for possible bumps in the road. Buy now, pay later powerhouse Affirm Holdings (NASDAQ: AFRM) is finding that the bigger it becomes, the more its borrowers are struggling to pay back their short-term loans. The credit quality of its customers is also deteriorating.
Maybe it's just a temporary phenomenon ... or maybe it's not. Even if it's just a short-term headwind, though, it's reason enough for Affirm shareholders to be concerned.
Source Fool.com
