Re:Launch HN: Atrato (YC W21) – Credit Card Alternative for ...
by rogereur on Friday March 12, 2021 @04:16PM
(#26441031)
Yeah. Something we've discovered is that merchant fraud is more common with smaller businesses, so that's a challenge. There's also a natural concentration of merchants. Like Affirm drives 30% of their revenue just from Peloton. We will see something similar.
I'd guess that the strategy is to start with specific vendors or purchases where it's easier to model origination + creditworthiness. I think the open question from my end is whether as a VC-backed business there's an incentive to go downmarket anytime soon or whether it makes more sense to expand across higher-end businesses for the next few years.