Affirm Holdings, Inc.

Affirm Holdings, Inc.

Company type	Public
Industry	Financial technology
Founded	2012 (2012)
Founder	Max Levchin, Nathan Gettings, Jeffrey Kaditz, Alex Rampell
Headquarters	United States
Area served	United States, Canada, United Kingdom
Key people	Max Levchin (CEO), Robert O'Hare (CFO), Michael Linford (COO)
Products	Buy now, pay later services, savings accounts, debit cards
Number of employees	(not specified)
Website	affirm.com

Affirm Holdings, Inc. is a U.S.-based technology firm that focuses on delivering financial solutions tailored for both consumers and retailers. Established in 2012 by Max Levchin, a co-founder of PayPal, it stands as the leading buy now, pay later (BNPL) provider headquartered in the United States. By 2025, Affirm caters to 22 million customers and manages $28 billion in payments annually.

The company offers unsecured installment financing at checkout through various channels including online payment links, self-service kiosks, integrations with third-party digital wallets, and both virtual and physical card options. Affirm’s revenue model relies on service fees charged to merchants and interest collected from borrowers, notably without imposing late payment penalties. The firm also provides a savings account alongside its debit card offering. Its credit evaluation process combines traditional credit scoring with advanced machine learning algorithms to analyze transaction risk.

Affirm’s operations are concentrated primarily in the U.S., Canada, and the U.K., where it aims to grow market presence by collaborating with over 358,000 retail partners. Under CEO Max Levchin’s guidance, the company prioritizes fintech innovation to broaden consumer payment alternatives and fuel business expansion.

2012–2015: Founding and early development

Affirm was launched in 2012 by Max Levchin, Nathan Gettings, Jeffrey Kaditz, and Alex Rampell within the startup incubator HVF. Levchin, known for co-founding PayPal, assumed the role of CEO in 2014, directing the company’s strategic growth and operational focus.

2016–2019: Expansion through retailer collaborations

By November 2016, Affirm had extended its BNPL offerings to merchants operating on e-commerce platforms such as Kibo Commerce, BigCommerce, AspDotNetStorefront, and Zen Cart. The service was further integrated with Salesforce Commerce Cloud, Magento, and Shopify ecosystems. In 2017, Affirm introduced a mobile application that allowed consumers to secure loans for purchases at any retailer. This app utilized machine learning to refine underwriting processes and credit risk evaluation, aiming to enhance loan approval rates while maintaining manageable repayment terms—strengthening Affirm’s competitive edge within the BNPL sector.

Affirm’s financing solution gained traction as an alternative payment method to conventional credit cards despite some scrutiny over its interest charges. A pivotal collaboration was formed with Walmart in February 2019, embedding Affirm’s payment options into Walmart’s self-checkout kiosks and online shopping platform—significantly increasing Affirm’s footprint in retail finance worldwide.

2020: Going public

On November 18, 2020, Affirm submitted registration documents to the Securities and Exchange Commission in preparation for its initial public offering (IPO). Although the IPO was delayed in December 2020, it officially launched on January 13, 2021, trading on the Nasdaq under ticker AFRM and raising approximately $1.2 billion. The following day saw share prices double, elevating Max Levchin’s ownership value to around US$2.5 billion.

2021–2022: Expansion phase

In May 2021, Affirm acquired fintech firm Returnly for $300 million to broaden its product suite. Subsequently, it secured strategic partnerships with leading retailers such as Amazon, Target, and Apple to offer BNPL services. By November 2021, Affirm became Amazon’s exclusive BNPL provider in the U.S., a status maintained through January 2023.

The Consumer Financial Protection Bureau (CFPB) initiated an investigation into BNPL providers including Affirm in December 2021 to examine consumer debt implications and data handling practices; Affirm expressed support for this review.

In May 2022, Affirm collaborated with digital payments company Stripe, Inc. to deliver its "adaptive checkout" solution to Stripe’s U.S.-based clients. By mid-2022, Affirm held the position as the largest BNPL provider in the United States despite challenges from rising interest rates and intensifying competition from companies like Apple. Additionally, increased expenses impacted the cost structure of Affirm’s securitized loan portfolio that finances roughly one-third of its lending activities.

In September 2022, Affirm extended its partnership with Amazon into Canada, serving nearly 14 million consumers and more than 235,000 merchants worldwide. By October 2022, Bank of America Securities identified Affirm as the most widely used BNPL application across the U.S., commanding a 30% market share amid an overall deceleration in sector growth.

2023: Workforce Reduction

In February 2023, Affirm revealed plans to reduce its staff by 19% and discontinue its cryptocurrency division as part of broader organizational restructuring.

By March 2023, U.S. News & World Report acknowledged Affirm as a "lower-interest alternative to credit cards" for purchases made both online and in physical stores, despite some limitations. In May, the company collaborated with FICO to create a "BNPL credit-scoring model" aimed at enhancing transparency within the buy now, pay later (BNPL) industry amid regulatory scrutiny. Affirm also held the distinction of being the largest independent BNPL provider based in the United States.

That same month, payment processor Worldpay integrated Affirm’s payment solutions for its merchant network. Affirm reported serving over 17 million consumers and 279,000 merchants, processing $20.2 billion in gross merchandise volume (GMV) for its fiscal year ending June 30, 2023.

In September 2023, online travel service Booking.com became part of Affirm’s payment ecosystem, which already included partners such as American Airlines, Cathay Pacific, CheapOair, and Vacasa. By November, CNBC disclosed that Amazon had expanded its collaboration with Affirm to provide financing options for small business owners on its platform, focusing on sole proprietors—the predominant business ownership type in the U.S. That month also saw Affirm team up with Best Buy and introduce a spending account linked to its debit card. President Libor Michalek emphasized features including interest on savings, ATM access, and direct deposit functionality.

2024–present: Global Growth

In April 2024, Affirm broadened its BNPL loan offerings to cover elective medical procedures, with nearly half of these transactions featuring 0% interest rates. By May 2024, the company reported an active user base of 18.1 million and an active merchant count of 292,000. Regulatory updates followed as the CFPB announced it would impose consumer protections similar to those for credit cards on BNPL providers like Affirm, mandating dispute resolution processes, refunds for returned items, and regular billing statements.

During May, Google extended its partnership with Affirm and Zip by adding BNPL options via Google Pay across a wider range of U.S.-based merchants and Android applications. Affirm’s savings account earned praise from CNBC and Forbes for its user-friendly design and mobile banking capabilities.

June 2024 marked Apple’s collaboration with Affirm to offer financing through Apple Pay, leading Apple to discontinue its own "Pay Later" service. Affirm planned to roll out BNPL options for U.S. Apple Pay users later that year. Additionally, in June, Affirm disclosed a data breach involving partner bank Evolve Bank & Trust but confirmed that its internal systems remained uncompromised.

By August 2024, Affirm had processed $26.6 billion in GMV for the fiscal year ending June 30. In September, installment loans became accessible through Apple Pay, contributing to a reported $28 billion GMV through September 30.

November 2024 saw Affirm introduce installment loans in the U.K., offering both interest-free and interest-bearing choices through merchants such as Alternative Airlines and Fexco. Leadership transitions included Robert O'Hare’s appointment as CFO and Michael Linford’s promotion from CFO to COO. At this time, Affirm claimed responsibility for one-third of U.S. BNPL payment volume and more than half of the sector’s revenue.

In February 2025, Affirm expanded its exclusive partnership with Shopify beyond the United States by launching Shop Pay Installments in Canada and preparing further expansions into Europe and Australia. The company also partnered with FIS to enable banks to issue branded "Affirm Card" debit cards linked to installment financing plans.

By March 2025, Walmart replaced Affirm with Klarna as its exclusive BNPL provider following Walmart-backed OnePay’s acquisition of shares in Klarna. Affirm noted that its Walmart partnership accounted for approximately 5% of GMV and nearly 2% of adjusted operating income during late 2024; nonetheless, Affirm products remained accessible via other channels including the Affirm Card. Furthermore, JPMorgan Chase collaborated with Affirm to offer BNPL options at checkout for merchants within its network, supporting purchase amounts up to $30,000 with repayment terms extending up to five years.

By May 2025, Affirm reported growth to 22 million active users and a merchant network comprising 358,000 partners as of March 31, reflecting ongoing expansion in global markets.

Business

Affirm incorporates its installment payment solutions directly at the point of sale—whether online, through self-service kiosks, or via digital wallets—while performing real-time credit assessments. For online shopping, it provides customers with a "virtual card," and it also offers a physical debit card that can be used both in physical stores and online.

To fund its loans, Affirm obtains capital from banks, insurance companies, and capital markets. Its revenue streams include merchant fees that can reach as high as 12.5%, alongside interest collected on consumer loans. Interest rates differ based on the borrower and merchant, with APRs spanning from 0% to 36%. Loan amounts may go up to $25,000, with repayment durations ranging between one month and five years. Affirm does not impose late fees; however, missed payments might impact future borrowing eligibility and credit scores. The company enforces interest rate caps and does not apply compound interest.

When analyzing transactions, Affirm considers multiple dimensions beyond traditional credit scores, such as timing and other subtle data points, to evaluate risk. Its fraud detection system leverages AI-powered analytics that estimate the probability of fraudulent activity by examining historical transaction trends.

Products

Affirm delivers a range of offerings tailored for both merchants and consumers. One key product is Adaptive Checkout, which utilizes real-time algorithms to tailor payment options uniquely based on customer profiles and the contents of their shopping carts. This feature presents shoppers with pre-approved installment plans available in bi-weekly or monthly payments for easy selection. Affirm also provides interest-free options including Split Pay, which features a "Pay in 4" bi-weekly installment plan, a "Pay in 2" option dividing purchases into two payments, and "Pay in 30," allowing full payment within 30 days.

The company’s Affirm Card functions like a debit card for both online and in-store use. It enables users to convert debit purchases ranging from $100 to $1,000 into installment payments within a day through an app that links directly to their bank accounts, offering an alternative payment method.

Moreover, Affirm offers the Affirm Money Account, a savings product that yields an annual interest rate of 3.85%, without any minimum balance requirements or fees. This account is FDIC insured up to $250,000 per depositor and is held through Cross River Bank.