CEO of buy now, pay later giant Affirm says high gas prices are hitting U.S. shoppers
The national average price for gas is at $4.09 per gallon and was last below $3 on March 2.
The CEO of Affirm's comments on the impact of high gas prices on U.S. shoppers are noteworthy, particularly in the context of consumer spending and debt. With the national average price for gas at $4.09 per gallon, it's clear that inflationary pressures are persisting, and consumers are feeling the pinch. This trend is likely to affect not only discretionary spending but also essential expenses, potentially leading to a shift in how consumers manage their finances.
In the buy now, pay later (BNPL) space, Affirm's insights are especially relevant. As consumers face higher gas prices, they may increasingly rely on BNPL services to manage their expenses, potentially leading to an uptick in usage. However, this also raises concerns about consumer debt and the ability of borrowers to repay their loans. The BNPL industry has faced scrutiny over its lending practices and the potential for consumers to accumulate debt.
To watch next: The trajectory of gas prices and its continued impact on consumer spending. As the summer months approach, demand for gas is likely to increase, which could put further upward pressure on prices. Additionally, keep an eye on Affirm's performance and the broader BNPL industry, as trends in consumer debt and spending habits may influence the sector's growth and regulatory environment.
Originally reported by cnbc.com. CurrencyNews adds analysis for finance & markets readers.