Affirm Sees Growth Driven by Zero-Interest Installment Loans Amid Inflation
Affirm Holdings reported strong growth in its zero-interest installment product, driven largely by inflation concerns among U.S. consumers. The buy now, pay later (BNPL) company saw a 41% year-over-year increase in this category during the fiscal fourth quarter of 2026, which accounted for 15% of total gross merchandise volume. Interest-bearing loans made up 72% of GMV and grew by 36%. CEO Max Levchin noted that consumers are increasingly using Affirm to manage inflationary pressures like rising gas prices. Affirm's average order value declined slightly due to the popularity of shorter, zero-interest transactions, which tend to involve smaller purchase amounts. The company also announced a promotion for COO Michael Linford to president and shared insights on future growth opportunities in e-commerce partnerships and debit card adoption. For Q4 2026, Affirm reported $1.17 billion in revenue (up 33% year-over-year) and net income of $1.62 billion, largely due to a noncash tax benefit. Levchin emphasized that the company is well-positioned for continued growth as it remains available at only about 10% of U.S. e-commerce merchants.
Tickers: $AFRM
Topics: buy now pay later consumer finance growth metrics interest-free loans