Affirm Still Bets Big on Debit+ for Buy Now, Pay Later Demand
In its second fiscal quarter of 2023 (the three-month period at the very end of 2022), the buy now, pay later company Affirm (NASDAQ: AFRM) reported disappointing results that led to a sell-off of the stock.
CEO Max Levchin noted in a letter to shareholders that the company saw a slowdown in certain discretionary consumer spending categories, which is part of the reason gross merchandise volume (GMV) at the company came in lighter than expected.
As consumer prices have soared and savings have been spent, consumers have shifted their spending to consumer staples. Affirm eventually wants to be able to capture this spending, which is why the company is making a big bet on its Debit+ card.
Source Fool.com
