how worthy you are to get a bnpl payment.ounger consumers are very open to linking their bank account, and older consumers are more nervous when it comes to things like privacy and data. it is skewed towards users who use the product earlier and 50% want to use it for holiday shopping. there's a 10% base of the consumers we surveyed who planned to do all of their shopping with buy now, pay later. caroline: you mentioned the firm. they've always tried to commit to the fact that this is about educating the user, the fact we are not going to see people overspending. but when you are talking of inflation, talking of wanting to spend more, can they really afford it? are you redistributing the payments? >> based on our data, they can. they often hold that money in their checking's and savings account. we see that for purchases like pelotons, which are pretty pricey. we think the consumers' pent-up demand comes from things like wages. with inflation, that means increased wages. last time i was on the show, we talked about robinhood,

. >> reporter: affirm is a so-called bnpl, credit companies that let you buy now, pay later.s shopping online may use a bnpl this-holiday season. >> it's basically a credit card replacement, except we have a couple advantages. >> reporter: billionaire max levchin, a co-founder of paypal, launched a firm in 2012. the san francisco-based company now has almost 9 million active customers. >> we built the whole idea around the notion that consumer finance is so complicated and so convoluted, consumers lose money and lose sleep over just uncertainty of what things actually cost. >> reporter: unlike a credit card, affirm underwrites each transaction separately in r real-time. interest rates, from zero to 30%. simple interest, not compound. payment options, 60 days to 60 months. and you know the total cost upfront. >> no fees, no gotchas, no regrets. >> transparency. >> that is the virtue. >> you pay over time and you know what you are going to pay. >> exactly. >> also buying in, more than 100,000 merchants, including giants walmart, target, and amazon. they pay higher fees to affir

bnpl, you know what you owe, how much time you have to pay off.repayment and actually they also seem to be really addictive. lending tree did a survey, and they found that more than 50% of people who tried buy now pay later will do it again five or more times because it's easy. you got to make sure you make those payments and you have enough in your bank account, you don't want to get dinged for overdrawing. >> if bnpl doesn't stick, you should go with the wimpy, i will gladly pay you tuesday for a hamburger today. from popeye. >> very good. >> the wimpy, shop wimpy this year. >> thank you. >> i'll look it up. >> we're not going to wait later for mr. roker's foreker's forec going to buy that right now. >> i'm wimpy every day anyway, let's show you what we've got happening. for the november outlook, warmer than average in the northeast, great lakes, and through much of the west, but then when it comes to precipitation, it's going to be dryer than average from the southwest, gulf coast into the southeast. wetter than average in the pacific northwest

the so-called buy now, pay later space known as bnpl. accounts for $128 billion according to world pay joined by zilc thrch pounder even in your most optimistic dreams i doubt you planned you would get this big, thisfast what that means is we want our customer who is the most savvy customer to be able to go anywhere they want and buy whatever they like and not be financially penalized for that privilege. they can go to macy's, walmart or online like amazon or ebay and pay over time for free no interest. no hidden fees we think we have a huge amount of runway ahead of us. with something like a traditional credit card, there is huge. >> there is clana. everybody in america is trying to get into space. how do you differentiate zilch >> because we are a relative newcomer we are able to look back at what others have done well. if you have a look at these they've built from these networks and similar to what zoom did to skype, we are bypassing the network going directly to the customer to pay over time for free my where they like and anything

and the customer -- why wouldn't that be more attractive to retailers we have seen the numbers the bnpl systems are putting up. they look good from the retailer's point of view >> yeah. no question. even if they continue to grow very well, it doesn't take away completely from what you are currently doing. i mean, even their adoption -- let's say they double in the next couple of years, that market share is still probably 5% or 7% of the total transaction volume out there i think there is space for everyone in this landscape i think to a extent, and the damage that we have seen in the stocks especially just aren't reflected in the businesses. and i don't think over the next two and three and five years, i think payments in general tends to move a at glacial pace. we don't change instantly but we change over time visa and mastercard and paypal, even global payments -- it is not like there is an incredibly large moat in buy now pay later that they can't get involved in currently. paypal is already doing it and the other companies could get involved as well i think they could be part of the

one of the others, that's the last time i can use affirm does it mean customers hopscotch from one bnpl and next and next and can kind of continue to be bad credit risk that way >> so the way with the npl, critical -- really use the same type of underwriting you would be using for a personal loan so it includes verification, employment verification, pretty strict underwriting -- to help -- assets -- consumer -- are getting positive because the type of consumers look for their credit card rather than a traditional credit card, it is about the consumer that is interested in keeping their good credit standing, but and as a decent way to pay down principal and interest every month as opposed to the traditional credit card where you can just carry over the balance every month and never quite take care of it and having this never ending debt. so when you choose -- it means it has discipline to pay down your debt every month. >> there's a tremendous amount of innovation in the fintech and payment space right now. regulators have hinted they might need to crack down because a lot of bank-like a

consumers having more debt and spending more, which is the primary sort of offer to the merchant in bnplhat ends up in eventually in people being a bit over their skis i think this is all part of what our system is designed to work well with. and we're somewhat of a rate agnostic system. as interest rates go up, our system adjusts to that but we're not overly rate sensitive like you might see elsewhere. >> dave girouard, thank you for joining us today, ceo of upstart. stock down 19%, still been a huge winner. >>> we've got just about 43 minutes left before the bell check out the nasdaq that is where you are feeling most of the selling today. and those tech stocks, the mega cap down almost 2% we recovered a little bit. the dow is down 214 points we've come off session lows. still, a red day across the board. next, does the white house have a plan to tackle inflation we'll ask the council of economic advisers member jared bernstein for his reaction to the consumer price index these are some of the top search tickers on cnbc.com. yields are shooting up a bit 155 there. tesla makes the list