>>> WELCOME BACK TO "FAST MONEY. AFFIRM SHARES SOARING TODAY, CLIMBING BACK INTO POSITIVE TERRITORY FOR THE WEEK THE FIN TECH STOCK NOW UP MORE THAN 20% SINCE A LOWOUT EARNINGS REPORT LAST MONTH THE COMPANY HAS PLANS TO EXPAND OVER THE NEXT YEAR OUR KATE ROONEY IS LIVE WITH THE CEO FROM THE GOLDMAN SACHS CONFERENCE IN SAN FRANCISCO. KATE >> HI, MELISSA THANK YOU SO MUCH. AND MAX, THANK YOU FOR BEING HERE >> GREAT TO BE HERE. >> I WANT TO GET YOUR TAKE ON THE CONSUMER WE HAD SOME BIG NEWS YESTERDAY FROM ALLY FINANCIAL. SAID THAT INFLATION, IN PARTICULAR, AND THE JOB MARKET IS REALLY WEIGHING ON CONSUMERS. WHAT ARE YOU SEEING FROM AFFIRM'S BORROWERS RIGHT NOW >> WE ARE NOT SEEING THAT. I THINK -- SO, NOT A DIRECT QUOTE, BUT CLOSE TO WHAT I READ IN A TRANSCRIPT WAS THEY NOTICED A DETERIORATION OF CONSUMER CREDIT QUALITY, CREDIT PERFORMANCE OVER THE LAST FEW MONTHS -- WE HAVE SEEN AN IMPROVEMENT OVER THE LAST FEW MONTHS, SO, OUR CONSUMER, AND WE SPAN FAIRLY LARGE PART OF THE U.S. AT THIS POINT, IS NOT STRUGGLING TO PAY OUR BILLS. LOTS OF STRUCTURAL REASONS WHY WE'RE VERY DIFFERENT, WE'RE UNSECURED LOANS, MUCH SHORTER TERM, ALWAYS CENTERED AROUND POINT OF SALE, SO, A FAIRLY DIFFERENT TYPE OF PRODUCT, BUT APPLES TO APPLES, WE'RE NOT SEEING IT. >> IS THAT TRUE ACROSS ALL INCOME LEVELS FOR YOU? >> YES OF OUR USERS, YES. >> REALLY. WOW. I MEAN, THAT'S SO DIFFERENT FROM WHAT OTHERS IN THE CARD SPACE HAVE SAID. OTHER THAN VISA, MASTERCARD, WHO SAID THE CONSUMER IS STRONG. THAT MIGHT SURPRISE A LOT OF PEOPLE >> I THINK STRUCTURALLY, IT'S REALLY GOOD TO REMEMBER, WE ARE FUNDAMENTALLY ADVANTAGED VERY SHORT-TERM, RELATIVELY SPEAKING, EVERY TRANSACTION IS PRICED FOR THE RISK IT REPRESENTS IN THE MOMENT OF UNDERWRITING WE ARE COMPENSATED FOR THE RISK WE TAKE. AS A LENDER, WE DO TAKE RISK, BUT WE DON'T ALLOW IT TO RUN AWAY FROM US EVER. SO, OUR RESULTS ARE NOT AN ACCIDENT >> SO, I WANT TO ASK YOU ABOUT THE APPLE PARTNERSHIP. THERE ARE THINGS YOU PROBABLY CAN'T TALK ABOUT, BUT IN TERMS OF EXTENDING IT -- EXPANDING, EXCUSE ME, I WONDER AS YOU LOOK AT CREDIT QUALITY AND SIGN SOME OF THESE BIG PARTNERSHIPS, HOW ARE YOU KEEPING THAT IN CHECK, OR IS IT REALLY APPLE SORT OF, MAYBE IN SOME CASES BEING THE BAD GUY AND SAYING, NO, YOU'RE NOT ELIGIBLE TO PAY IN FOUR HERE FOR AN iPHONE? >> ON THE APPLE THING, SUPER EXCITED TO BRING IT TO LIFE. WHEN THAT HAPPENS. TOO EARLY TO COMMENT ON THAT BUT YOU ACTUALLY HIT ON A REALLY KEY POINT. A REALLY IMPORTANT REASON WHY FOLKS PARTNER WITH US, FROM THE LITTLEST TO THE LARGEST, WE A ARE -- REALLY GENUINELY ARE THE RIGHT PARTY TO ASK, HEY, SHOULD I BOUY THIS THING, SERVICE, WHATEVER BECAUSE WE ARE VERY HONEST WHEN WE TELL YOU YES, AND HERE'S THE RATE, OR, NO, WE THINK YOU ARE OVEREXTENDED WE WON'T SCREW YOU, WE WON'T KICK YOU WHEN YOU'RE DOWN, WE'RE ON YOUR SIDE, SO, WHEN WE TELL YOU NO, IT'S A GENUINE COMPASSIONATE -- YOU PROBABLY ARE OVEREXTENDING YOURSELF IT IS MUCH EASIER TO OUTSOURCE THAT TO SOMEONE LIKE US WHO WILL NOT LATE FEES, WILL TREAT THE CUSTOMER RIGHT, THAN DOING IT YOURSELF WE ARE THE RESPONSIBLE LENDER. >> LETTING THEM DOWN EASY. I WANT TO ASK YOU ABOUT INTEREST RATES. BIG FED MEETING NEXT WEEK. WHAT WOULD LOWER RATES MEAN FOR AFFIRM >> BETTER GROWTH OUR MARGIN TARGET IS 3% TO 4% TO BE DELIVERED ON THAT, HAVE BEEN DELIVERING ON THAT INTEND TO DELIVER ON THAT. BUT WHENEVER -- OVER TIME, NOT IMMEDIATELY, THE FED RATE CUTS TRICKLE INTO OUR COST OF CAPITAL, IT WILL ALLOW US TO APPROVE THAT MARGINAL CONSUMER WHERE WE WOULD HAVE OTHERWISE SAID, WE CAN'T AFFORD THE RISK >> PROFITABILITY PICTURE HAS LOOKED A LOT BETTER FOR AFFIRM, AS YOU REPORTED IN EARNINGS. I WANT TO ASK YOU, YOU ARE A FOUNDER OF PAYPAL. SOME OF YOUR COLLEAGUES RECENTLY, FROM THE PAYPAL ERA, AT LEAST, HAVE SWITCHED SIDES WHEN IT COMES TO THEIR PARTY OR PRESIDENTIAL BID DOES THIS REPRESENT, IN YOUR MIND, A BROADER SHIFT TO THE RIGHT IN TECH IN SILICON VALLEY? >> I'M VERY FAR FROM POLITICS, COULDN'T OPINE ON THAT OPINING ON THE POLITICS SLICE BY SILICON VALLEY, THAT'S WELL BEYOND -- I'M VERY BUSY TRYING TO LEND MONEY TO HELP FOLKS BUY COUCHES AND BICYCLES I THINK WE SERVE BOTH THE RED STATES AND THE BLUE STATES AND INTEND TO DO SO, INCLUDING THINGS IN SILICON VALLEY >> ANY BIG POLICIES THAT YOU'RE WATCHING FOR NOVEMBER? >> I WAS VERY EXCITED ABOUT THE ATTACK ON LATE FEES. I REALLY DO THINK IT'S A BAD THING, AND I'M GLAD REGULATORS ARE TAKING A HARD LOOK AT IT, AND, YOU KNOW, IT'S BEING CHALLENGED, AS YOU MIGHT EXPECT, BUT I THINK LATE FEES SHOULD BE AT THE VERY LEAST TAPPED, AND IF NOT ELIMINATED IF I HAVE ONE WISH TO POLITICIANS LISTENING, KILL DEFERRED INTEREST. IT IS SUCH AN EVIL PRO