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In theory the market will sort this out. Overly stingy firms will reap the rewards of lower quality and be outcompeted in their industries, overly generous ones
by hyperadvanced 2y ago
In theory the market will sort this out. Overly stingy firms will reap the rewards of lower quality and be outcompeted in their industries, overly generous ones will run out of money, the “just right” ones will exceed expectations and be rewarded. Where those lines are drawn probably varies by firms. I frankly don’t know how the company that invented monthly payments for shoes with a high interest rate will stay in business long term, so maybe they really don’t need to hire anyone anyway
- arcticbull 2y agoYeah the whole BNPL space is very strange from my perspective -- it's basically just small dollar loans for borrowers you don't underwrite, without collateral (you can't repossess my socks) in exchange for super high merchant interchange. I was confident they'd all get ruined in the first real recession as that would be the first debt to go unpaid. 2021 wasn't a real recession I guess, since it lasted all of 5 minutes. It's just re-inventing credit cards, but with significant structural disadvantages leading to higher costs.
- rapsey 2y agoIt is strange in that it is a terrible business. Which is why they are burning money.
- belter 2y ago> In theory the market will sort this out. If that would be true Billionaires would not have to buy the last US elections....