Credit cards may soon be a thing of the past as consumers will ditch the plastic and opt for digital solutions, according to financial company, Affirm.

The company recently launched an alternative lending app., that doubles as a digital credit card. Jack Chou, the company's Head of Product, joined us to discuss his strategy to reinvent credit.

Chou breaks down the three reasons credit cards are broken. He says companies profit off of consumer missteps and interests are not aligned. Also, traditional credit companies make more money on fees than other services, something his company is looking to counter.

Chou highlights that Affirm doesn't profit off user missteps, and its goal is to be transparent. With the new product, Affirm believes it is reinventing credit for the 21st Century.