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Finance Receivables, Net (Tables) | 12 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
Schedule of Finance Receivables, Net | Finance receivables, net, originated in the retail POS payment solutions segment, consist of the following (in thousands):
| As of December 31,
| 2022 |  | 2021
Finance receivables, gross | $ | 195,987 |  |  | $ | 220,329 |
Fair value premium on non-PCD finance receivables (1) | — |  |  | 40,251 |
Non-credit discount on PCD finance receivables (2) | — |  |  | (3,521) |
Merchant partner discounts and premiums, net | (3,517) |  |  | (104) |
Unearned origination fees | (4,143) |  |  | (360) |
Finance receivables, amortized cost | 188,327 |  |  | 256,595 |
Less allowance for loan losses | (84,833) |  |  | (75,574) |
Finance receivables, net | $ | 103,494 |  |  | $ | 181,021 |
(1)Represents the difference between the initial fair value and the unpaid principal balance as of the date of the AFF Acquisition, which is recognized as interest income on an effective yield basis over the lives of the related non-PCD finance receivables. (2)Represents the difference between the unpaid principal balance and the amortized cost basis as of the date of the AFF Acquisition, which is recognized through interest income on an effective yield basis over the lives of the related PCD finance receivables.
Schedule of Allowance for Credit Losses | Changes in the allowance for loan losses are as follows (in thousands):
| As of December 31,
| 2022 |  |  |  | 2021
Balance at beginning of year | $ | 75,574 |  |  |  |  | $ | — |
Provision for loan losses (1) | 118,502 |  |  |  |  | 48,952 |
Initial allowance recognized for PCD loans (2) | — |  |  |  |  | 32,036 |
Charge-offs | (114,535) |  |  |  |  | (5,545) |
Recoveries | 5,292 |  |  |  |  | 131 |
Balance at end of year | $ | 84,833 |  |  |  |  | $ | 75,574 |
(1)For the year ended December 31, 2021, includes $44.3 million as a result of the establishment of the initial allowance for expected lifetime credit losses for non-PCD finance receivables acquired in the AFF Acquisition, which is recorded as provision for loan losses in the consolidated statements of income. (2)Represents the establishment of the initial allowance for expected lifetime credit losses for PCD finance receivables acquired in the AFF Acquisition, which is added to the acquisition date fair value to establish the initial amortized cost basis of the PCD loans. As this initial allowance for loan losses is added to the acquisition date fair value, there is no provision for loan losses recognized in the consolidated statements of income during 2021 for PCD loans.
Financing Receivable, Past Due | The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of December 31, 2022 and 2021, by origination year (in thousands):
| Origination Year |  |
| 2022 |  | 2021 |  | 2020 |  | Total
As of December 31, 2022 |  |  |  |  |  |  |
Delinquency: |  |  |  |  |  |  |
1 to 30 days past due | $ | 14,186 |  |  | $ | 2,795 |  |  | $ | — |  |  | $ | 16,981 |
31 to 60 days past due | 8,048 |  |  | 1,822 |  |  | — |  |  | 9,870 |
61 to 90 days past due (1) | 6,597 |  |  | 1,750 |  |  | — |  |  | 8,347 |
Total past due finance receivables | 28,831 |  |  | 6,367 |  |  | — |  |  | 35,198 |
Current finance receivables | 132,197 |  |  | 20,932 |  |  | — |  |  | 153,129 |
Finance receivables, amortized cost | $ | 161,028 |  |  | $ | 27,299 |  |  | $ | — |  |  | 188,327 |
As of December 31, 2021 |  |  |  |  |  |  |
Delinquency: |  |  |  |  |  |  |
1 to 30 days past due | $ | — |  |  | $ | 16,077 |  |  | $ | 2,260 |  |  | $ | 18,337 |
31 to 60 days past due | — |  |  | 10,024 |  |  | 1,648 |  |  | 11,672 |
61 to 90 days past due (1) | — |  |  | 7,898 |  |  | 1,478 |  |  | 9,376 |
Total past due finance receivables before fair value adjustments | — |  |  | 33,999 |  |  | 5,386 |  |  | 39,385 |
Current finance receivables before fair value adjustments | — |  |  | 160,998 |  |  | 19,482 |  |  | 180,480 |
Finance receivables before fair value adjustments | $ | — |  |  | $ | 194,997 |  |  | $ | 24,868 |  |  | 219,865 |
Fair value premium on non-PCD finance receivables |  |  |  |  |  |  | 40,251 |
Non-credit discount on PCD finance receivables |  |  |  |  |  |  | (3,521) |
Finance receivables, amortized cost |  |  |  |  |  |  | $ | 256,595 |
(1)The Company charges off finance receivables when a receivable is 90 days or more contractually past due.

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