SAN FRANCISCO — Buy now, pay later lender Affirm said its latest quarter showed installment financing becoming a routine part of everyday spending, as zero-interest offers expanded beyond occasional big-ticket purchases and into regular commerce.
Affirm reported that gross merchandise volume rose 36% from a year earlier to $13.8 billion, while revenue climbed 30% to $1.1 billion. Active consumers increased 23% to 25.8 million, transactions per user grew 20% to 6.4, and active merchants expanded 42% to about 478,000, reflecting broader adoption across the platform.
According to the company, direct-to-consumer activity led growth. GMV from that channel rose 52% to $4.3 billion, driven by the Affirm Card. Card volume surged 159% to $2.2 billion, while active cardholders more than doubled to 3.7 million, pushing attach rates to roughly 14%.
Zero-interest financing played a central role, the company added, explaining that GMV tied to 0% APR products, including Pay-in-X, increased 60% and outpaced overall platform growth. More than 60% of new customers selected a 0% option for their first transaction, and nearly 39% of all purchases during the quarter carried no interest, Affirm said, About 60,000 merchants funded 0% APR offers, nearly four times the prior year, as sellers increasingly used the programs to drive demand rather than as limited promotions.
‘Clarity at Checkout’
Chief Executive Max Levchin said the company’s focus remains clarity at checkout. “When Affirm says no interest, we actually mean no interest and there’s no asterisk,” he told analysts, adding that promotional cashback campaigns by competitors have had little impact on Affirm’s results.
The Affirm Card continued to push BNPL into daily spending. Card-based 0% APR GMV rose 190% and now represents nearly 20% of total card volume, signaling a shift from one-time installment purchases to repeat use across categories.
Credit performance remained stable as volumes increased. Thirty-day delinquencies on monthly installment loans were 2.7%, down sequentially, while recent cohorts tracked toward net charge-offs of about 3.5%. Losses on Pay-in-4 loans stayed below 1% of GMV, and the allowance for credit losses held steady at 5.4%, according to Affirm.
What is Shaping Offers
Affirm said its AdaptAI and BoostAI systems are increasingly shaping financing offers and merchant promotions, while new initiatives included expanded retail partnerships, integration with QuickBooks Payments and limited testing in rent-related use cases.
For the full fiscal year, Affirm projected GMV of $48.3 billion to $48.85 billion and revenue of roughly $4.09 billion to $4.15 billion, with operating margins improving later in the year. Shares fell about 6% in after-hours trading.
