Strong Demand for Buy Now, Pay Later Drives Higher Volume and Improving Margins for Affirm
Like its peers, Affirm is focused on getting as many merchants as possible onto its platform, seeking to expand its reach through either direct agreements or partnerships with payment service providers. This approach has been effective, as both transaction volume and the number of merchants using Affirm saw rapid growth in fiscal 2026. While we do expect transaction volume growth to slow over time, we see a long runway for growth for Affirm and project average spending volume growth of 22.4% over the next five years, as consumer demand for buy now, pay later loans continues to see strong momentum.
United States