“If we want to be a tech business, we would rather be in subscription business. As soon as you go into lending business, your multiples become similar to banking multiples. So if you look at tech business multiple, you can usually get like 40, 50 PE.”

Well, I think our business model, my personal opinion, is we want to have the least amount of risk. So even if we lend, it won't be a large portion of balance sheet. So at the moment, target state is less than 10%. And then the rest we would securitize.

Why?

But is that because, because I'm always skeptical of multiples-based arguments, because ultimately the business is good or it isn't, and you can educate investors if the business is in fact good. Like when we started Stripe, people thought payments businesses were horrendous and deserving of low…

I think it's more the business itself. So if you look at the credit business in banking and general credit business, so every time when you do a loan or credit card, you need to put provisions against it. And then really amount of these provisions highly depend on the models that you use, on the…

uncertainty. You think fundamentally making your money via credit is this very cyclical profit stream that can be entirely wiped out in a downturn. It's very sensitive to you doing the math right. Whereas the nice thing about subscriptions is ultimately people are paying you this money on a…