Affirm alternate "payment" methods

From the early 2010s to the early 2020s, America saw some of the lowest interest rates in history. The idea of buying a house and getting a 3% interest rate on your mortgage was unfathomable to people in the 80s and 90s who at times had loans with double-digit interest rates. In the last two years rates have started to climb back to a more common rate, but they feel unconscionably high given what was normalized in the past decade.

Entire industries will be upended because of this macroeconomic shift. The next few years will be interesting to watch, especially in the real estate sector.

Another industry that benefitted from that was the lending space. Businesses like Affirm and Afterpay normalized the construct of “buy now, pay later”. This isn’t a new concept. In the middle of the 20th century, people financed stuff all the time. These companies just branded it well.

As interest rates climb higher, I’d venture to guess these businesses will struggle. Additionally, you can bet consumers are feeling the pressure of rampant inflation and stagnant wages. You can’t afford what you could even a few years ago.

This all got me thinking… what if there was an alternative way to finance things other than cash? You could imagine trading items (bartering) or giving Afterpay your time in exchange for that new mattress you’ve been shopping for.

This is one of those concepts that feels exceptionally bleak because it doesn’t feel far off. It’s got more of a dystopian flavor to it than fun, but it’s reflective of where many in society stand today.

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