How Affirm Makes Money

AFFIRM WEBSITE Full Article

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

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

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

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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.

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

Merchant Fees

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Interest

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Interchange

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