Millennials rebelling against credit cards: PayPal co-founder
'[Millennials] desire to understand what their money will do for them'
As consumers gear up for Black Friday and Cyber Monday deals, we may be witnessing the twilight of the credit card thanks to millennials.
Silicon Valley fintech company Affirm, which was started by PayPal co-founder Max Levchin, says that 67 percent of consumers are looking to avoid credit cards this year and are prioritizing saving overspending.
"We're safe on the front that people still use money, digital or otherwise," Levchin told FOX Business’ Maria Bartiromo. "But we do see a huge pool from the millennial generation and the one coming after it for transparency and desire to understand what their money will do for them."
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Levchin added that the holidays are a stressful time in part because people are trying to figure out what to buy but also because they have no idea whether they'll be able to afford it. The study, he said, also found that around 60 percent of people will go into debt to buy gifts for their friends.
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"So the reason the credit cards, I think are going to be challenged, including by companies like Affirm, is because there's a generation of people that says, 'I'd like to understand when I'm going to be out of debt,'" he said.
Affirm was started in 2012 and offers an alternative to traditional banking and credit cards.