What next? Levchin said that a major restructure would create a “nimbler team” as the company targets profitability by the end of fiscal 2023.
Pivoting to a more cautious approach should cut costs and minimize losses as firms contend with challenges ahead:
- BNPL firms are under greater scrutiny from regulators, and providers may have to adjust to legislation potentially arriving later this year.
- Big Tech’s entry into BNPL should also shake up the industry: Apple Pay Later stands to capitalize on Apple’s huge user base. To prepare for these, Affirm and other BNPL firms need to keep a lid on costs and prioritize products likely to yield the highest return on investment.
Related content: Check out our US Buy Now, Pay Later Forecast 2022 to learn about the factors that will affect growth in the space through 2026.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.