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> realistically it's functionally no different than a credit card. > There are real issues with BNPL, mostly extremely loose underwriting in the pursuit of gro
by onlyrealcuzzo 4y ago
> realistically it's functionally no different than a credit card.
> There are real issues with BNPL, mostly extremely loose underwriting in the pursuit of growth.
It's a cc with bad underwriting...
You don't see this as a fundamental problem?
This doesn't seem much different to me than other sub-prime bubbles...
- sbuccini 4y agoWhen done correctly, the underwriting is actually significantly better as it's done on a per-transaction basis, incorporating the item itself (ring purchases are significantly more risky to finance than sneaker purchases). You can also incrementally dole out a credit limit, rather than giving someone a $10k threshold upfront without any veto power over how they use that amount. That being said, there are a ton of hucksters in the industry and I suspect we'll see most of them wash out in the next few years :)
- mountainriver 4y agoI’ve worked in this industry and the underwriting is actually significantly better than most cc companies