How Affirm Makes Money

Affirm is a ‘Buy Now, Pay Later’ (BNPL) service that allows consumers to pay for goods and services over the course of multiple installments. 

Over 11 million consumers have used Affirm to shop at brands such as Adidas, Peloton, and Walmart. 

Affirm was founded in 2012 by Max Levchin, Nathan Gettings, and Jeffrey Kaditz. Levchin previously started FinTech giant PayPal, which he sold to eBay. 

In 2021, they took Affirm public, which netted the firm an additional $1.2 billion. Affirm had previously raised $1.5 billion in funding. 

Affirm also owns other BNPL firms such as Canada-based PayBright, which it acquired for CA$340 million.

In 2021, Affirm generated $870 million in revenue. But how does the company actually make money?

Merchant Fees

Affirm charges merchants a percentage fee for every sale that is conducted through its platform. The fee is around 3 percent.


The firm generates revenue on the loans that it issues to consumers. Interest rates may vary between 0 percent to 30 percent APR.


Affirm offers a debit card that can be used to pay at selected stores. It collects interchange fees whenever customers use said card.

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