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Funding Squeeze at Buy-Now-Pay-Later Pioneer Flashes Industry Warning

  • Affirm’s securitization funding costs rise after rate hikes
  • Burgeoning fintech firms could be hit by cost of living crisis
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WATCH: In today’s Technomics segment, Affirm CEO & Co-Founder Max Levchin discusses the new competition coming from Apple’s new Buy Now Pay Later service. Source: Bloomberg
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Some of the riskiest loans given to millennials and Gen Z shoppers for clothes and electronics -- and neatly repackaged for investors -- are dropping in value.

Securitization packages of buy-now-pay-later loans from one provider, Affirm Holdings Inc., are falling in price for investors to buy while becoming more expensive to issue, after rising rates and a cost of living crisis cast a shadow over the sector.