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No, it's that the market size for expensive, short term loans is smaller than they thought.
by cm2012 6y ago
No, it's that the market size for expensive, short term loans is smaller than they thought.
- ethbro 6y agoIt's likely not smaller. But the market for expensive, short term loans, from people who can access and use the internet and/or apps is smaller. I don't imagine a payday loan customer is thinking about that new financial service option they read about in the paper. Which increases cost of customer acquisition. Which makes this more of a Palantir market and less of a scalable one. Square has a much better shot, as pivoting an existing customer relationship seems a much better angle.