Max Levchin

We borrow money to go to college.

We borrow money to buy a home.

We borrow to get a car.

Like borrowing with responsibility, borrowing in a way that allows you to set yourself up for a successful future is a perfectly great thing.

Like I wouldn't have had a fancy computer science degree if I couldn't borrow a boatload of money, which I've since paid back, you know, 30 odd years ago.

Same is true for vast majority of people.

And so you can, and by the way, if you look at companies, obviously they use debt in very sophisticated ways to finance their expansion, et cetera.

So,

To use credit is no fault, not an indictable offense, in my opinion.

I think it's very, very easy to agree with that.

Abusing credit, getting yourself into debt, staying in debt permanently is a bad idea.

We've seen lots and lots of problems with all sorts of people, I'm sure we all know, who are just too deep into debt and struggling to get out.

What I contend is using something like a firm, certainly using a firm, given the no late fees, no compounding, etc.,

is probably the best way to borrow, if you will.

And I'm confident everyone will at some point or another.

If you're trying to stack all sorts of debt instruments together just to see how far you'll go, you're abusing the system and we will stop you.

We will not participate in your abuse.

And so in that sense, I think we're probably the best alternative to not just credit cards, but the overall kind of a fault of the American credit system.

If you cast your mind back to 1985 or 6, there was a famous TV commercial.

There's someone rolling their eyes.