Buy Now, Pay Later will push out portions of the credit card industry: TD Cowen's Moshe Orenbuch

BNPL Market Overview - BNPL is increasingly used like credit cards for expensive purchases with higher interest rates [1] - BNPL caters to individuals who prefer not to use credit cards or have limited credit availability [2] - US BNPL spending amounts to nearly $100 billion, but outstanding debt is a smaller fraction due to short-term nature [4] - BNPL is replacing credit cards for those with limited credit [5] Credit Card Industry Impact - Credit card companies are not expected to be significantly impacted long-term [9] - The current credit card market in the US offers rich rewards for consumers with good credit scores, incomes, and large credit limits, a segment BNPL does not target [6] Company Analysis & Recommendations - TD Cowan has a "buy" rating on Affirm [11][12] - TD Cowan is positive on Synchry, Cap One, Visa, and Mastercard [10] - TD Cowan is neutral on American Express due to current market conditions [10]