Max Levchin

I think most people use card, including a firm card, for purchases.

We mostly see our card used for basically situations when the consumer says, Hmm, this is expensive.

I'm not going to put on my debit card.

Most of our customers, generally speaking, use debit cards for a huge percentage of their purchases.

They sort of dip into credit cards when the transaction matters to them so much that they need to think about it.

And so a firm card is the replacement for that credit card transaction where you can say, Hmm, instead of getting out my card, getting into debt, not knowing exactly when that's going to wrap up, I'm going to take out firm.

I know exactly how that thing works.

12 months, six months, whatever, some interest or no interest at all.

40% of our transactions last quarter had no interest at all attached to them because of these promos.

And, uh, we end up, uh, you know, just picking up all that volume from the, the, the mostly debit consumer.

Our card is cool in a sense that when we built it, we thought why create two cards, a debit and a credit if we can have both.

So it's a debit card connects to your existing bank account.

If you just swipe a firm card,

you will get those debit transactions that way too.

If you want to buy something that requires a little more consideration, you flip a bit, the card switches into credit mode, and then you have yourself in a firm loan.

I suspect, I mean, I'm definitely not privy to sort of any of the credit card side of the world, just given how we position ourselves.

So the other side of it, I don't know if it helps us or hurts us.

I think in general, directionally, I agree with the administration that we have a bunch of problems that we correctly associate with credit card spend.

And so in my opinion, and I'm a little bit of a veteran in this space, so maybe my opinion is

well-informed, I think the uncapped revolving is the biggest problem.