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OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) (Tables)
 3 Months Ended
Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Current Assets
The following table presents the detail of other current assets (in thousands):
  March 31, 2022December 31, 2021
Inventory, net$72,340 $77,058 
Restricted cash109,450 18,778 
Processing costs receivable236,044 228,914 
Prepaid expenses123,306 63,341 
Accounts receivable, net107,200 89,702 
Loans held for investment, net of allowance for loan losses (i)
90,051 91,447 
Other137,807 118,189 
Total$876,198 $687,429 
(i) Refer to Note 7, Loans Held for Investment for further details.
Accrued Expenses and Other Current Liabilities
The following table presents the detail of accrued expenses and other current liabilities (in thousands):    
  March 31, 2022December 31, 2021
Accrued expenses$368,739 $254,900 
Accrued royalties61,593 53,616 
Accrued transaction losses (i)53,659 55,167 
Accounts payable123,982 82,173 
Deferred revenue, current52,973 48,462 
Pagantis deferred consideration (ii)43,195 — 
Other230,223 144,991 
Total$934,364 $639,309 
(i) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations.

(ii) On March 9, 2021, prior to acquisition by the Company, Afterpay completed the acquisition of Pagantis SAU and PMT Technology SLA (collectively, "Pagantis"). Pursuant to the acquisition agreement, Afterpay issued a convertible note to the sellers for deferred and contingent consideration. Under the terms of the note, upon a change in control, Afterpay had the option to redeem and convert the convertible note. The settlement amount consists of two components: a deferred consideration portion of €40.3 million that is a fixed contractual amount, and an additional amount that is contingent on the underlying equity value of Pagantis exceeding certain agreed upon thresholds at the settlement date. The Company has commenced discussions with the convertible note holder in relation to settlement of the note, but an agreement as to the value of the note has yet been reached. As of March 31, 2022, the Company determined that based on the underlying value of Pagantis, the contingent consideration had no value. The Company accrued $43.2 million related to the deferred consideration, which is included within other current liabilities.
The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):
Three Months Ended
March 31,
20222021
Accrued transaction losses, beginning of the period$55,167 $70,557 
Provision for transaction losses20,721 (6,742)
Charge-offs to accrued transaction losses(22,229)(15,193)
Accrued transaction losses, end of the period$53,659 $48,622 

In addition to amounts reflected in the table above, the Company recognized additional provision for transaction losses that were realized and written-off within the same period. The Company recorded $87.3 million and $82.1 million for the three months ended March 31, 2022 and 2021, respectively, for such losses.
Reserve for Transaction Losses The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):
Three Months Ended
March 31,
20222021
Accrued transaction losses, beginning of the period$55,167 $70,557 
Provision for transaction losses20,721 (6,742)
Charge-offs to accrued transaction losses(22,229)(15,193)
Accrued transaction losses, end of the period$53,659 $48,622