Affirm sees rising BNPL demand amid U.S. inflation

Affirm Holdings is seeing increased demand for its buy now, pay later (BNPL) services as U.S. consumers attempt to manage inflationary pressures, including rising gas prices. According to the company’s latest financial results, short-term interest-free installment products grew by 41% year-over-year during the fiscal fourth quarter.

CEO Max Levchin noted that consumers are using these services to budget more effectively across various inflationary points. While interest-bearing loans still make up 72% of Affirm’s total loan mix, the growth in zero-interest products suggests a shift toward using BNPL for everyday spending and managing monthly outflows. Levchin described the consumer as generally healthy but cautioned that sustained price pressure remains a long-term concern.

Affirm currently maintains a significant market presence, used by 45% of BNPL users, slightly ahead of competitors Klarna and PayPal. The company also reported that its debit cardholder count has reached approximately 5.2 million consumers.