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Affirm thinks it can make money coming and going

Hello and welcome to Protocol | Fintech! This Friday: how Returnly fits into "buy now, pay later," Ripple under fire and Credit Sesame's brush with failure.
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Affirm, which offers credit to consumers so they can buy now and pay later, just spent $300 million on Returnly, a company that makes it easier to return purchases. CEO Max Levchin told Bloomberg: "Buyer's remorse is alive and well. We're going to make a lot of people a little bit happier."
It's a bullish bet on ecommerce. With the pandemic is coming under control, the economy is bouncing back, and Affirm expects consumers to start spending again.
Returns are about the goods — and the money. Affirm said the Returnly deal could let it help merchants immediately issue store credit for returned goods. That means more spending, faster, as well as happier customers.
Point of no return. The pandemic "forced us all to change our buying behaviors," Rajeev Singh-Molares, general partner of Alma Mundi Ventures and a Returnly board member, told Protocol. "When the old normal returns, are we going to go back to our previous behavior? Unlikely."
— Ben Pimentel
The future is positively digital. Ready? Consumers, investors and shareholders are savvier than ever. Everyone needs to create more engaging experiences that keep pace with today's new expectations. See how you can stay ahead with next-gen technologies that deliver on what matters most.
Crowdfunding pioneer: Kiva CEO Neville Crawley discussed how its nonprofit, small business lending platform has evolved, and why it expects a surge in demand for capital.
FTC's powers clipped: The Supreme Court ruled that the federal agency has the power to create injunctive relief, but cannot impose fines or monetary penalties on companies.
What fintech trend do you find most exciting?
The use of AI and data. When it comes to consumer finance, the availability of data and the low cost of that data, plus the fact that consumers are willing to give you consent to use their data for their own benefit, are substantially up. There's demand by Millennials to use their data: "I gave you my Social Security. You should be able to pull that data. Why do you ask me that question again? Just make it easy for me." That's very exciting.
What fintech trend is most troubling for you?
A lot of newcomers join this gold rush in fintech, but they really don't realize how important security, privacy, some of those basic things that consumers assume you have are. Many of them will not succeed, but it's troubling to see how it's attracting people who are really not taking those things seriously.
What has been your biggest professional blunder and what did you learn from it?
Early on in the life of the company, we used data from one of the larger credit bureaus. We sort of changed the game and gave data for free. We became a threat to this bureau and they pulled the plug on us. We were fortunate and had insight to manage to get involved with other bureaus and ultimately pulled through. But this has not been an easy road to be a consumer advocate, to try to level the playing field for consumers.
That's how much Credit Suisse said it would issue in mandatory convertible notes to address capital concerns after a string of losses including Luckin Coffee, Wirecard, Greensill and Archegos.
The future is positively digital. Ready? Consumers, investors and shareholders are savvier than ever. Everyone needs to create more engaging experiences that keep pace with today's new expectations. See how you can stay ahead with next-gen technologies that deliver on what matters most.
Thanks for reading — see you Tuesday.
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