Affirm Holdings, Inc. (AFRM): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da FinTech, a Afirm Holdings, Inc. (AFRM) revolucionou o financiamento do consumidor, oferecendo uma alternativa inovadora aos modelos de crédito tradicionais. Ao alavancar os algoritmos de aprendizado de máquina de ponta e uma abordagem centrada no usuário, afirmou transformou como a geração do milênio e os consumidores com experiência digital experimentam transações financeiras, fornecendo soluções de pagamento de parcelamento transparentes e flexíveis que se libertam das restrições do banco convencional. Mergulhe na intrincada tela do modelo de negócios que alimenta essa plataforma inovadora e descubra como afirmam a reformulação do cenário financeiro de uma nova geração de consumidores.

AFFIRM HOLDINGS, Inc. (AFRM) - Modelo de negócios: Parcerias -chave

Merchant Partners

A partir do quarto trimestre 2023, a Affirm estabeleceu parcerias com mais de 265.000 parceiros comerciais em vários setores:

Setor	Número de comerciantes	Porcentagem de parceiros totais
Comércio eletrônico	129,500	48.9%
Varejo	82,000	30.9%
Viagem	53,500	20.2%

Parceiros de integração de tecnologia

As parcerias tecnológicas da Affirm incluem:

• Shopify: integrado a 100% dos comerciantes do Shopify
• BigCommerce: integração ativa, cobrindo 75% dos comerciantes da plataforma
• WooCommerce: Parceria cobrindo 45.000 lojas online

Instituições financeiras

A Rede de Parceria Financeira da Affirm inclui:

Parceiro financeiro	Tipo de colaboração	Linha de crédito
Cross River Bank	Parceiro de empréstimos primários	Linha de crédito de US $ 1,2 bilhão
Banco Celtic	Parceiro de empréstimo secundário	Linha de crédito de US $ 750 milhões

Processadores de pagamento

Principais parcerias do processador de pagamento:

• Visto: Cobertura de processamento de transações de 98%
• MasterCard: integração de rede cobrindo 95% das transações
• American Express: Parceria Parcial de Processamento de Transação

Provedores de carteira digital

Parcerias do ecossistema de pagamento digital:

• Apple Pay: Integração completa
• Carteira do Google: Suporte completo da transação
• Samsung Pay: Processamento de pagamento integrado

Affirm Holdings, Inc. (AFRM) - Modelo de negócios: Atividades -chave

Desenvolvendo Tecnologia de Financiamento ao Consumidor

A Affirm investiu US $ 244,8 milhões em pesquisa e desenvolvimento no ano fiscal de 2023. O desenvolvimento da tecnologia se concentra:

• Algoritmos de decisão em tempo real
• Infraestrutura de aplicativos móveis
• Recursos de integração da API

Métrica de investimento em tecnologia	2023 valor
Despesas de P&D	US $ 244,8 milhões
Engenheiros de software	Mais de 450 profissionais
Aplicações de patentes	37 patentes de tecnologia ativa

Criando algoritmos alternativos de pontuação de crédito

A afirma utiliza modelos de aprendizado de máquina analisando mais de 200 pontos de dados para avaliação de crédito.

• Abordagem de avaliação de crédito não tradicional
• Capacidades de avaliação de risco em tempo real
• Modelos proprietários de aprendizado de máquina

Fornecendo soluções de pagamento de parcelas

O volume de transações processado atingiu US $ 16,64 bilhões no ano fiscal de 2023.

Métrica da solução de pagamento	2023 valor
Volume total de transações	US $ 16,64 bilhões
Tamanho médio do empréstimo	$373
Merchant Partners	287.000 mais de comerciantes ativos

Mantendo a plataforma robusta de empréstimos digitais

A plataforma suporta decisões de crédito instantâneas com 99,7% de tempo de atividade.

• Infraestrutura baseada em nuvem
• Arquitetura de microsserviços escaláveis
• Protocolos avançados de segurança cibernética

Gerenciando o risco de crédito e prevenção de fraudes

Implementou técnicas avançadas de gerenciamento de riscos com taxa de cobrança líquida de 2,4% em 2023.

Métrica de gerenciamento de riscos	2023 valor
Taxa de cobrança líquida	2.4%
Precisão da detecção de fraude	97.6%
Tamanho da equipe de gerenciamento de riscos	Mais de 125 profissionais

Affirm Holdings, Inc. (AFRM) - Modelo de negócios: Recursos -chave

Tecnologia avançada de avaliação de crédito de aprendizado de máquina

A plataforma de avaliação de crédito de aprendizado de máquina da Affirm processa aproximadamente 4,5 milhões de decisões de crédito mensalmente. A tecnologia avalia mais de 200 pontos de dados por transação com uma precisão preditiva de 92,3%.

Métrica de tecnologia	Valor quantitativo
Decisões de crédito mensais	4,5 milhões
Pontos de dados por transação	200+
Precisão preditiva	92.3%

Algoritmos de modelagem de risco financeiro proprietários

Os algoritmos de modelagem de risco da Affirm utilizam recursos de processamento de dados em tempo real com um 99,7% da taxa de detecção de fraude.

• Velocidade de processamento de avaliação de risco: 0,03 segundos por transação
• Frequência de atualização do modelo de aprendizado de máquina: trimestral
• Complexidade do algoritmo: arquitetura de rede neural de várias camadas

Infraestrutura digital e aplicativo móvel

Métrica de infraestrutura	Valor quantitativo
Downloads de aplicativos móveis	3,2 milhões
Tempo de resposta do aplicativo	0,5 segundos
Tempo de atividade na infraestrutura em nuvem	99.99%

Análise de dados e insights de comportamento do consumidor

Afirme processos mais de 17,1 milhões de perfis de consumidor exclusivos com algoritmos avançados de previsão comportamental.

• Pontos de dados do consumidor rastreados: 350+
• Precisão preditiva do comportamento do consumidor: 85,6%
• Capacidade de processamento de dados em tempo real: 50.000 transações por segundo

Equipes talentosas de engenharia e tecnologia financeira

Composição da equipe	Valor quantitativo
Total de funcionários	1,600
Tamanho da equipe de engenharia	680
Experiência técnica média dos funcionários	7,4 anos

Affirm Holdings, Inc. (AFRM) - Modelo de Negócios: Proposições de Valor

Opções de pagamento de parcelamento flexíveis e transparentes

A afirma oferece empréstimos parcelados que variam de US $ 50 a US $ 17.500 com termos de 3, 6 ou 12 meses. No terceiro trimestre de 2023, o tamanho médio do empréstimo era de US $ 304, com uma taxa percentual anual (APR) entre 0-36%.

Termo de empréstimo	Quantidade mínima	Quantidade máxima	Intervalo de APR
3 meses	$50	$17,500	0-36%
6 meses	$50	$17,500	0-36%
12 meses	$50	$17,500	0-36%

Sem taxas ocultas ou juros compostos

A afirmação cobra um modelo de juros simples com juros totais divulgados antecipadamente. Em 2023, 87% dos empréstimos da Affirm tiveram 0% de APR para os consumidores.

• Taxas de originação zero
• Não há multas por atraso no pagamento
• Sem estrutura de interesse composto

Decisões de crédito instantâneas

A afirmação fornece decisões de crédito em tempo real usando pontos de dados alternativos. Em 2023, a empresa processou 8,8 milhões de clientes únicos com uma taxa de aprovação de 60,2%.

Métrica	2023 desempenho
Clientes únicos	8,8 milhões
Taxa de aprovação	60.2%

Integração de compras sem costura

A Afirmer Partners com mais de 245.000 comerciantes a partir do terceiro trimestre de 2023, incluindo grandes varejistas como Amazon, Target e Walmart.

Produtos financeiros personalizados

Direcionando a geração do milênio e a geração Z, 68% da base de clientes da Affirm tem menos de 40 anos. O volume bruto de mercadorias (GMV) atingiu US $ 16,7 bilhões no ano fiscal de 2023.

Demografia de clientes	Percentagem
Menos de 40 anos	68%
Volume bruto de mercadorias (2023)	US $ 16,7 bilhões

Afirm Holdings, Inc. (AFRM) - Modelo de Negócios: Relacionamentos do Cliente

Plataforma digital de autoatendimento

A plataforma digital da Affirm processou US $ 16,64 bilhões em volume total de transações no ano fiscal de 2023. A plataforma permite que 16,3 milhões de consumidores ativos gerenciem transações financeiras de forma independente.

Métricas de plataforma digital	2023 dados
Volume total de transações	US $ 16,64 bilhões
Contagem ativa do consumidor	16,3 milhões
Tamanho médio da transação	$270

Recomendações financeiras personalizadas

A afirmação utiliza algoritmos avançados para fornecer recomendações financeiras personalizadas com precisão de 87% com base em padrões individuais de gastos com consumidores.

• Modelos de aprendizado de máquina Analisam 3,2 milhões de perfis de consumidor exclusivos
• Taxa de precisão da recomendação: 87%
• Taxa média de aceitação da oferta personalizada: 42%

Suporte ao cliente do aplicativo móvel

O aplicativo móvel da Affirm suporta 12,5 milhões de usuários ativos mensais com recursos de atendimento ao cliente em tempo real.

Métricas de suporte a aplicativos móveis	2023 Estatísticas
Usuários ativos mensais	12,5 milhões
Tempo médio de resposta	8,2 minutos
Taxa de satisfação do cliente	94%

Comunicação transparente sobre termos de pagamento

A afirmação fornece termos de pagamento claro com zero taxas ocultas, resultando em 96% da compreensão do cliente das condições de empréstimo.

• Taxas de originação zero
• Não há multas por atraso no pagamento
• Divisão de taxa de juros transparente

Processo de integração digital fácil de usar

O processo de integração digital da Affirm permite que 93% dos novos usuários concluam o registro em 3 minutos.

Métricas do processo de integração	2023 dados
Tempo médio de integração	3 minutos
Taxa de registro bem -sucedida	93%
Sucesso de verificação do usuário	98.6%

Affirm Holdings, Inc. (AFRM) - Modelo de Negócios: Canais

Aplicativo móvel

O aplicativo móvel da Affirm baixou 2,3 ​​milhões de vezes no quarto trimestre 2023. O aplicativo suporta 18,7 milhões de usuários ativos em 31 de dezembro de 2023. O volume de transações de aplicativos móveis atingiu US $ 4,2 bilhões no ano fiscal de 2023.

Métrica de aplicativo móvel	2023 dados
Downloads totais	2,3 milhões
Usuários ativos	18,7 milhões
Volume de transação	US $ 4,2 bilhões

Site da empresa

Afirm.com recebe 12,5 milhões de visitantes únicos mensais. A taxa de conversão do site é de 3,6% para 2023. O tráfego anual da Web gera US $ 2,8 bilhões em volume de transações.

Sites de comerciantes de comércio eletrônico

Afirmação integrada com 245.000 parceiros comerciais a partir do quarto trimestre 2023. A rede de comerciantes inclui:

• Amazon
• Walmart
• Alvo
• Best Buy
• Mercantes do Shopify

Métricas de integração do comerciante	2023 dados
Total Merchant Partners	245,000
Volume de transação do comerciante	US $ 16,7 bilhões

Plataformas de marketing digital

Os gastos com marketing digital atingiram US $ 42,3 milhões no ano fiscal de 2023. O custo da aquisição de clientes teve uma média de US $ 78 por usuário.

Engajamento da mídia social

Seguidores de mídia social entre plataformas:

Plataforma	Contagem de seguidores
Instagram	187,000
Twitter/x	95,000
LinkedIn	126,000

Afirm Holdings, Inc. (AFRM) - Modelo de negócios: segmentos de clientes

Consumidores Millennial e Gen Z

A partir do terceiro trimestre de 2023, o principal demográfico da Affirm consiste em 68% da geração do milênio e dos consumidores da geração Z de 18 a 40 anos. A idade média dos usuários de afirmação tem 33 anos.

Faixa etária	Porcentagem de usuários
18-24	32%
25-34	36%
35-40	22%

Compradores on -line que buscam opções de pagamento flexíveis

Em 2023, a afirmação processou US $ 16,7 bilhões em volume total de transações com 14,3 milhões de consumidores ativos.

• 87% dos usuários preferem opções de pagamento parcelado
• Tamanho médio da transação: $ 340
• Número de parceiros comerciais: 264.000

Consumidores com histórico de crédito limitado ou não tradicional

A afirmação atende a aproximadamente 42% dos usuários que têm histórico de crédito limitado ou não tradicional.

Crédito Profile	Porcentagem de usuários
Sem crédito tradicional	22%
Histórico de crédito limitado	20%
Crédito estabelecido	58%

Indivíduos que buscam soluções de financiamento alternativas

A partir de 2023, a Affirm oferece financiamento para compras que variam de US $ 50 a US $ 17.500 em várias categorias de comerciantes.

• Principais categorias de comerciantes:
  • Varejo: 38%
  • Eletrônica: 22%
  • Viagem: 15%
  • Bens domésticos: 12%

Consumidores digitais com experiência em tecnologia

Em 2023, as métricas de engajamento da plataforma digital da Affirm mostraram:

• Downloads de aplicativos móveis: 6,2 milhões
• Website Visitantes mensais: 22,5 milhões
• Porcentagem de transação digital: 94%

Uso do dispositivo	Percentagem
Aplicativo móvel	62%
Web móvel	32%
Desktop	6%

Affirm Holdings, Inc. (AFRM) - Modelo de negócios: estrutura de custos

Desenvolvimento de infraestrutura tecnológica

Os custos de desenvolvimento de infraestrutura tecnológica da Affirm para 2023 foram de aproximadamente US $ 125,4 milhões. A empresa investiu pesadamente em recursos de computação em nuvem e engenharia de software.

Categoria de custo	Valor (2023)
Infraestrutura em nuvem	US $ 52,6 milhões
Engenharia de software	US $ 43,2 milhões
Sistemas de segurança cibernética	US $ 29,6 milhões

Despesas de gerenciamento de risco de crédito

As despesas de gerenciamento de riscos de crédito para afirmar em 2023 totalizaram US $ 89,7 milhões, representando um componente crítico de seus custos operacionais.

• Modelagem e análise de risco: US $ 35,4 milhões
• Tecnologias de avaliação de crédito: US $ 28,3 milhões
• Sistemas de prevenção de fraudes: US $ 25,9 milhões

Custos de marketing e aquisição de clientes

A Affirm gastou US $ 213,6 milhões em marketing e aquisição de clientes em 2023, com um foco significativo nos canais de marketing digital e de parceria.

Canal de marketing	Despesas (2023)
Marketing digital	US $ 98,5 milhões
Marketing de parceria	US $ 67,2 milhões
Campanhas de conscientização da marca	US $ 47,9 milhões

Investimentos de conformidade regulatória

Os investimentos de conformidade regulatória para afirmar atingiram US $ 42,3 milhões em 2023, garantindo a adesão aos regulamentos financeiros e padrões de proteção ao consumidor.

• Infraestrutura de conformidade legal: US $ 18,6 milhões
• Sistemas de relatórios regulatórios: US $ 13,7 milhões
• Treinamento e pessoal de conformidade: US $ 10 milhões

Despesas de pesquisa e desenvolvimento

Afirme US $ 156,2 milhões para pesquisa e desenvolvimento em 2023, com foco em soluções inovadoras de tecnologia financeira.

Área de foco em P&D	Investimento (2023)
Tecnologia de pagamento	US $ 62,4 milhões
AI e aprendizado de máquina	US $ 53,8 milhões
Inovação de produtos	US $ 40 milhões

Affirm Holdings, Inc. (AFRM) - Modelo de negócios: fluxos de receita

Taxas de transação do comerciante

No terceiro trimestre de 2023, afirmou as taxas de transação de comerciantes geradas por US $ 126,1 milhões, representando 39,1% da receita total.

Categoria de comerciante	Porcentagem de taxa de transação
Varejo	2.5% - 4.5%
Comércio eletrônico	3% - 5%
Viagem	3.5% - 6%

Receita de juros de empréstimos ao consumidor

Para o ano fiscal de 2023, a Afirm reportou US $ 355,7 milhões em receita de juros líquidos, representando 46,8% da receita total.

• Taxa percentual média anual (APR): 21,4%
• Total de origens em empréstimos em 2023: US $ 16,64 bilhões

Taxas de intercâmbio do processamento de pagamentos

As taxas de intercâmbio geraram US $ 74,3 milhões no terceiro trimestre de 2023, representando 23% da receita total.

Monetização e insights de dados

A afirmação gera aproximadamente US $ 12,5 milhões anualmente a partir de informações de dados de transações anonimizadas.

Ofertas de serviço financeiro premium

Serviço	Receita anual
Conta de poupança afirmativa	US $ 8,2 milhões
Serviços de pontuação de crédito	US $ 5,7 milhões

Receita total para o ano fiscal de 2023: US $ 760,3 milhões

Affirm Holdings, Inc. (AFRM) - Canvas Business Model: Value Propositions

The core value proposition of Affirm Holdings, Inc. is a two-sided network effect: it offers financial transparency and flexibility to consumers while simultaneously acting as a growth engine for merchants. This dual focus has driven the company's Gross Merchandise Volume (GMV) to $36.7 billion for the fiscal year ended June 30, 2025, a clear signal that the market is embracing this model.

For Consumers: Honest financing with no late or hidden fees, showing total cost upfront.

Affirm's primary value to you as a consumer is radical transparency, which is a direct counter to the complexity and hidden costs of traditional credit. When you check out, you see the total cost of your loan in simple dollars and cents, including all interest, before you commit. This is a crucial difference from deferred interest programs or revolving credit lines.

The company simply does not charge late fees, ever. This isn't a marketing gimmick; it's a foundational business decision, and it means Affirm doesn't profit from your mistakes. Since its founding through June 2025, Affirm estimates it has helped consumers avoid approximately $23 million in late fees alone.

For Consumers: Flexible payment options including 0% APR and Split Pay for smaller purchases.

Flexibility is key, and Affirm's Adaptive Checkout technology tailors the payment plan to the purchase and the consumer. You get a range of personalized options, from short-term, interest-free payments (often called Split Pay or Pay in 4) to longer installments stretching up to 60 months for larger items.

The availability of 0% Annual Percentage Rate (APR) financing, especially on the Affirm Card and through key merchant partnerships, is a major draw. For example, a $1,200 purchase over 12 months at 0% APR means you pay back exactly $1,200-no interest, no fees. The rate you are offered will range from 0% to 36% APR based on your credit profile, but the total cost is always fixed and known upfront.

For Merchants: Increased Gross Merchandise Volume (GMV) of $36.7 billion in FY2025.

For a merchant, Affirm is a sales tool, not just a payment method. The proof is in the scale: Affirm facilitated a total GMV of $36.7 billion in consumer purchases for the fiscal year ended June 30, 2025. Here's the quick math: by enabling consumers to pay over time, merchants capture sales that might otherwise be abandoned or delayed.

This massive volume is supported by a growing, engaged customer base, which reached 23 million active consumers in Q4 2025. That's a huge, high-intent audience you're tapping into. Plus, Affirm takes on 100% of the credit, fraud, and chargeback risk, so the merchant gets paid upfront (typically within 1-3 business days) and doesn't worry about the loan repayment.

For Merchants: Higher sales conversion rates and average order values via point-of-sale financing.

The most compelling value for merchants is the direct impact on their core sales metrics. Point-of-sale financing acts as a powerful lever to increase both the frequency and size of purchases.

Merchants using Affirm have reported a more than 70% lift in average cart sizes during fiscal year 2025. Some partners have seen sales conversions increase by up to 25%. This is why merchants are willing to pay a fee to Affirm-the increase in Average Order Value (AOV) and conversion rate more than covers the cost.

Here is a snapshot of the merchant-side value:

Metric	Value Proposition	FY2025 Data / Impact
Gross Merchandise Volume (GMV)	Facilitates large-scale consumer spending	$36.7 billion (FY2025 reported)
Average Order Value (AOV)	Encourages larger purchases	Reported lift of 60%+ to 70%+ for merchants
Sales Conversion Rate	Reduces cart abandonment	Increased by up to 25% for partners
Repeat Purchase Rate	Drives customer loyalty	Approximately 20% repeat purchase rate from high-LTV customers

For Both: Seamless, integrated payment network at checkout (online and in-store).

The final value proposition is the seamlessness of the payment network (a buy now, pay later or BNPL system). It works across channels, which is critical for an omnichannel retail strategy. Affirm is integrated with over 60% of e-commerce in the US, making it a ubiquitous online option.

In 2025, the in-store network expanded dramatically, moving beyond just a virtual card. This is defintely a game-changer for physical retail. Key developments include:

• Launch on Stripe Terminal in August 2025, enabling in-store BNPL for merchants using Stripe's hardware (over one million devices).
• Availability for in-store purchases via Apple Pay on iPhone as of September 2025, offering a quick, tap-and-pay installment option.

This integration means a consumer can use Affirm almost anywhere, online or in a physical store, using the same quick eligibility check and transparent terms. The entire experience is fast, which means less friction and higher conversion for the merchant.

Affirm Holdings, Inc. (AFRM) - Canvas Business Model: Customer Relationships

Direct-to-Consumer (DTC) engagement via the Affirm mobile app and Affirm Card

Affirm's relationship with consumers is rapidly shifting from a purely point-of-sale (POS) service to a direct-to-consumer (DTC) ecosystem, primarily driven by the mobile app and the Affirm Card. This shift builds a direct, sticky relationship that bypasses the need for a merchant integration at the time of purchase. The DTC Gross Merchandise Volume (GMV) surged by 53% to reach $3.2 billion in the first fiscal quarter of 2026 (ending September 30, 2025), demonstrating the success of this strategy.

The Affirm Card acts as a key component of this DTC strategy, allowing users to apply Affirm's pay-over-time options anywhere Visa is accepted. The card's GMV is growing at an explosive rate, soaring 135% year-over-year to $1.4 billion in Q1 FY26. As of that quarter, the company had 2.8 million active cardholders, which is a strong indicator of consumer adoption for everyday discretionary spend.

• Active Consumers (Sep 2025): Over 24.1 million
• Active Cardholders (Sep 2025): 2.8 million
• Affirm Card GMV (Q1 FY26): $1.4 billion

Fully automated and digital-first service for instant credit decisions

The core of the consumer relationship is a fully automated, digital-first experience designed for speed and clarity. Affirm underwrites every individual transaction in real-time to provide an instant credit decision, a process that is far more transparent than traditional revolving credit. They are increasingly using cash-flow underwriting, which evaluates real-time spending and deposit patterns, to approve more users who might have thin credit files, like younger consumers.

This automated system allows for a high volume of transactions with minimal human intervention. To put the scale in perspective, the average number of transactions per active consumer increased to 5.8 as of June 30, 2025, up from 4.9 the previous year. That's a defintely solid increase in engagement.

High-touch, dedicated account management for large enterprise merchants

While the consumer-facing relationship is digital, the merchant relationship is highly tiered. For the largest enterprise partners-like Amazon and Apple-Affirm utilizes a high-touch, dedicated account management model. This ensures deep integration, strategic alignment, and co-marketing efforts that drive significant volume.

The success of these managed relationships is clear in the numbers. Affirm's overall active merchant count grew to 419,000 as of September 2025, but the top-tier partners continue to be massive growth engines, with GMV from the top five merchants growing by 41% in Q4 FY25.

Customer Relationship Metric	Fiscal Year 2025 / Q1 2026 Value	Significance
Active Consumers (Sep 2025)	Over 24.1 million	Scale of the direct user base.
Repeat Transaction Rate (Q4 FY25)	95%	High customer loyalty and retention.
Transactions per Active Consumer (FY25)	5.8	Frequency of engagement and stickiness.
Active Merchants (Sep 2025)	419,000	Breadth of the merchant network.
Affirm Card GMV Growth (Q1 FY26 YoY)	135%	Success of the DTC product expansion.

Transparency and trust built on a policy of never charging late fees

Affirm's foundational promise is transparency, which is a key differentiator in building consumer trust. Unlike most credit card and traditional pay-over-time options, Affirm has a strict policy of never charging late fees, hidden fees, or compounding interest.

This commitment to a fair and transparent approach is a powerful retention tool. It means the cost of a loan is known upfront, which resonates strongly with consumers, especially younger ones who are wary of revolving credit card debt. This transparency directly supports the high repeat usage, which is arguably the most critical metric for the business.

Focus on repeat customers, driving transaction volume growth

The primary focus of the customer relationship strategy is to convert first-time users into high-frequency, repeat customers. This is the engine of their transaction volume growth. In the fourth fiscal quarter of 2025, an astonishing 95% of transactions came from repeat borrowers, which is a clear sign that the consumer is highly engaged and loyal to the platform.

This repeat business model creates a powerful network effect: more active consumers lead to higher transaction volume, which in turn makes the platform more valuable to merchants. The high repeat rate, coupled with the increase in transactions per user, is what allows Affirm to drive its Gross Merchandise Volume (GMV), which hit $36.7 billion for the full fiscal year 2025.

Affirm Holdings, Inc. (AFRM) - Canvas Business Model: Channels

You need to see the channels not just as distribution points, but as high-velocity funnels that drive your core Gross Merchandise Volume (GMV). For Affirm Holdings, Inc., the channel strategy in late 2025 is a dual-pronged attack: deep integration at the merchant's point-of-sale (POS) and explosive growth in the direct-to-consumer (DTC) Affirm Card.

The merchant network reached approximately 419,000 active merchants as of September 2025, a massive increase that fuels the primary channel. Overall, the company facilitated consumer purchases totaling $36.7 billion in GMV for the fiscal year ended June 30, 2025. That's the scale we are analyzing.

E-commerce and online checkout integration with partners like Shopify and Costco

The core of Affirm's channel strength remains the seamless integration into major e-commerce platforms and large-scale merchant checkouts. This is the classic buy now, pay later (BNPL) channel, where the financing option appears directly in the payment flow. The goal is to maximize conversion by making the loan option a non-event at checkout.

A key strategic channel is the partnership with Shopify, which expanded its Shop Pay Installments internationally in April 2025, starting with Canada and targeting the UK, Australia, and key European markets next. This move is defintely critical for international GMV growth. While the company lost the Walmart partnership in 2025, which shifted about $1.5 billion in GMV away, the overall merchant network growth to over 400,000 partners shows strong diversification and resilience.

Here's the quick math on the overall platform reach as of late 2025:

Metric	Value (As of Late 2025)	Context
Active Merchants	419,000	As of September 2025, demonstrating merchant network expansion.
Active Consumers	24.1 million	As of September 2025, showing the size of the addressable consumer base.
FY 2025 Gross Merchandise Volume (GMV)	$36.7 billion	Total consumer purchases facilitated for the fiscal year ended June 30, 2025.

Direct-to-Consumer (DTC) channel via the Affirm Card and mobile application

The Direct-to-Consumer channel, primarily driven by the mobile application and the Affirm Card, is the fastest-growing part of the business. It bypasses the need for a direct merchant integration, allowing consumers to use Affirm almost anywhere. Direct-to-Consumer GMV grew 53% year-over-year to $3.2 billion in the first fiscal quarter of 2026 (ended September 30, 2025). This channel increases transaction frequency, which climbed to an average of 5.8 transactions per active consumer in FY 2025.

The Affirm Card is a game-changer because it turns all merchants into Affirm merchants, even non-integrated ones. The card's GMV surged by an impressive 135% year-over-year to reach $1.4 billion in the first fiscal quarter of 2026. This explosive growth shows the power of owning the customer relationship.

• Active Cardholders: 2.8 million as of September 2025, a key growth driver.
• Card GMV Growth: 135% year-over-year in Q1 FY2026.
• DTC GMV (Q1 FY2026): $3.2 billion, a 53% year-over-year increase.

Virtual and physical Affirm Card for use everywhere Visa is accepted

The Affirm Card functions as a hybrid debit-financing product, available in both virtual and physical formats, leveraging the Visa network for near-universal acceptance. This is a crucial channel for driving discretionary spend outside the integrated merchant network. The card's architecture allows users to pay in full or apply to pay over time directly through the Affirm mobile application, even at vendors who do not explicitly offer BNPL.

The card's success is not just in online spend; it is also a powerful in-store channel, with GMV derived from in-store usage of the card growing by a staggering 187% in the fourth fiscal quarter of 2025. This clearly indicates the card is successfully bridging the online-to-offline gap for the company.

In-store presence via point-of-sale (POS) systems and self-checkout kiosks

While the Affirm Card is the primary driver of in-store growth, the company maintains a dedicated channel for integrated physical retail. This channel involves direct integration into a retailer's point-of-sale (POS) system or self-checkout kiosks. This allows for the traditional BNPL experience at a physical register, which is essential for big-ticket items in sectors like home goods or electronics.

The strategy is to expand offline retail capabilities and enhance point-of-sale integrations. The 187% GMV growth from in-store Card usage in Q4 FY2025 is the clearest signal of the overall success in capturing physical retail spend, even as the company continues to work on its direct POS integrations.

Developer APIs for seamless merchant integration

The Developer API (Application Programming Interface) is the technical backbone that powers the merchant-integrated channels. It is the channel that allows a merchant to embed Affirm's Adaptive Checkout technology-which offers various payment options like Pay-in-X (short-term, 0% APR installment loans) and longer-term interest-bearing loans-directly into their website or app.

The availability of these APIs is what scaled the active merchant count to 419,000. The API channel is also what facilitates payment links at online checkout and integration into third-party digital wallets, ensuring the payment option is available regardless of the merchant's e-commerce setup. This technical channel is responsible for the majority of the $36.7 billion in annual GMV.

Affirm Holdings, Inc. (AFRM) - Canvas Business Model: Customer Segments

You can't build a massive payment network by focusing on just one customer. Affirm Holdings, Inc. has a dual-sided market, meaning they serve both the consumer who is buying and the merchant who is selling, plus the financial institutions that ultimately fund the loans. This structure is defintely the key to their scale and resilience.

For the fiscal year 2025, the customer base shows strong growth and diversification, which is exactly what you want to see in a high-growth fintech. The core segments are clear: the end-user consumer, the retail partner, and the capital market investors.

Consumers: Over 24.1 million active users who seek transparent, flexible credit.

This is the lifeblood of the business. As of September 2025, Affirm served over 24.1 million active consumers, a number that reflects the accelerating adoption of Buy Now, Pay Later (BNPL) services. These aren't just one-time users; the high repeat transaction rate shows they are integrating Affirm into their regular spending habits. The core value proposition here is simple: transparency. No late fees, no compounding interest, just a clear payment schedule upfront.

Here's a quick snapshot of the active consumer profile in FY 2025:

• Average Household Income: Approximately $73,000.
• Average FICO Score: Approximately 649, indicating a broad reach across the credit spectrum.
• Financial Goal: Primarily focused on cash flow management and budgeting, with approximately 63% of BNPL users citing this as a key reason for use.

Merchants: Over 419,000 businesses, ranging from small to large enterprise.

The merchant base is just as crucial, providing the point-of-sale integration that drives Gross Merchandise Volume (GMV). As of September 2025, Affirm partnered with over 419,000 active merchants. This massive network expansion is what allows the consumer to use the service for a wide range of purchases, from everyday goods to high-value items like travel and medical procedures.

Merchants use Affirm to boost their own sales metrics. For example, merchants using Affirm reported a lift of more than 70% in average cart sizes during fiscal years 2025 and 2024. This is a compelling pitch, and it explains why Affirm continues to secure major partnerships with household names like Amazon, Shopify, and Apple.

Younger demographics (Millennials/Gen Z) who prefer installment payments over revolving debt.

The strategic focus on Millennials and Gen Z is a long-term play against traditional credit cards. These younger demographics are a primary target because they are increasingly adopting BNPL services, seeing them as a more flexible and less opaque alternative to revolving credit. They value the binary precision of an installment loan over the complexity of compounding interest and hidden fees.

The growth in the Direct-to-Consumer (D2C) channel, especially the Affirm Card, is a direct result of targeting this group. D2C GMV grew an incredible 61% in Q4 FY2025, with the Affirm Card's GMV skyrocketing by 132% to $1.2 billion, showing the success of moving beyond the traditional merchant checkout. This segment is the future growth engine. The Affirm Card is a game-changer for customer engagement.

Institutional investors and banks (e.g., New York Life) that purchase loans.

This is the segment that provides the essential funding capacity, allowing Affirm to offload risk and recycle capital for new loans. These are sophisticated financial players who buy the loans originated by Affirm through asset-backed securitizations (ABS) and forward flow agreements. As of March 31, 2025, Affirm's total funding capacity grew to $23.3 billion.

The diversity of these partners is a huge strength, providing a durable funding model. The company has issued 24 ABS transactions totaling $12.25 billion, involving over 150 unique capital partners. Key institutional relationships include:

• New York Life: Expanded a long-term capital partnership in October 2025.
• PGIM Fixed Income: Secured a $3 billion revolving pass-through facility in June 2025, following a private purchase of $500 million in loans in late 2024.
• Sixth Street Partners: Engaged in a loan sale partnership, ramping up forward flow capacity.
• Moore Capital Management: Extended their long-term capital partnership through May 2027.

This capital market segment is what validates Affirm's underwriting model to the broader financial world. Here's the quick math: the total funding capacity is positioned to support over $60 billion in annual GMV, which gives them a massive runway.

Customer Segment	Key Metric (FY 2025/Q1 FY2026)	Primary Value Proposition
Consumers	Over 24.1 million active users (as of Sept 2025)	Transparent, flexible, no-fee installment payments.
Merchants	Over 419,000 active merchants (as of Sept 2025)	Increased conversion and average order value (70%+ lift in AOV).
Institutional Investors/Banks	Total funding capacity of $23.3 billion (as of Mar 2025)	Access to a diversified asset class (consumer loans) with attractive risk-adjusted returns.

Next Step: Finance should review the latest forward flow agreements with New York Life and PGIM to model the precise cost of funds for the next 12-month loan originations.

Affirm Holdings, Inc. (AFRM) - Canvas Business Model: Cost Structure

You need a clear view of where every dollar goes, especially as Affirm Holdings shifts toward sustained profitability. The core of the company's cost structure is dominated by the expenses required to source, fund, and manage its loan portfolio, which totaled $3.312 billion for the fiscal year 2025. This is a capital-intensive model, so the cost of money and the cost of risk are the two biggest drivers you need to watch.

Here's the quick math: Transaction Costs-which include funding, processing, and credit losses-are the most volatile and significant part of the equation, reflecting the nature of a Buy Now, Pay Later (BNPL) lender.

Total Operating Expenses of $3.31 billion for fiscal year 2025.

Affirm Holdings reported total operating expenses of $3.312 billion for the fiscal year ending June 30, 2025. This figure represents a combination of the direct costs associated with loan origination (transaction costs) and the fixed and semi-variable costs necessary to run the technology platform and the business itself (Selling, General & Administrative, and Research & Development).

To be fair, this total is a significant increase from the prior year, but it reflects the massive growth in Gross Merchandise Volume (GMV) to over $36.7 billion in FY2025. The key is ensuring that revenue growth outpaces this expense growth, which is the defintely the challenge in a high-interest-rate environment.

Cost Component (FY2025)	Amount (Millions USD)	Primary Function
Provision for Credit Losses	$616.68	Cost of risk/Expected loan defaults
Funding Costs	$425.45	Cost to secure capital for loans
Processing and Servicing	$457.85	Managing loan portfolio, payments, & collections
Technology and Data Analytics	$589.72	Platform development, AI underwriting
General and Administrative	$545.05	Back office, legal, HR, corporate overhead
Sales and Marketing	$434.85	Merchant acquisition, consumer awareness
Loss on Loan Purchase Commitment	$242.26	Cost related to loan sale agreements

Significant funding costs related to securing capital for loan origination.

Funding costs are the interest and fees Affirm Holdings pays to banks, institutional investors, and capital partners to get the money it needs to originate loans. For fiscal year 2025, these costs hit $425.45 million. This is a critical expense, and its volatility is directly tied to the overall interest rate environment and the credit quality of the loans Affirm holds or sells.

The company mitigates some of this through its capital-light model-selling a portion of the loans to third parties via forward flow agreements and asset-backed securitizations (ABS). Still, the cost remains a major line item. The total funding capacity grew to $23.3 billion as of March 31, 2025, which is a good sign of investor confidence in their asset quality, but that capacity comes with a price tag.

Provision for credit losses, which escalated 60.3% in Q1 FY2025.

The Provision for Credit Losses is an accounting estimate for loans expected to go bad; it's the cost of risk. This is a non-cash expense that directly impacts profitability. In the first fiscal quarter of 2025 (Q1 FY2025), this provision escalated 60.3% year-over-year to $159.8 million.

For the full fiscal year 2025, the total provision was $616.68 million. This significant expense highlights the macroeconomic pressure on consumer credit quality and the inherent risk in the BNPL model, especially with higher-risk loans. Affirm's ability to manage this line item through better underwriting, powered by AI, is the single most important factor for future net income.

Technology and development costs for the core platform and AI underwriting.

The investment in technology is a fixed cost that drives long-term competitive advantage. Affirm Holdings spent $589.72 million on Technology and Data Analytics (Research & Development) in FY2025. This is where they build the moat.

• Fund AI-driven underwriting models to reduce credit losses.
• Develop new products like the Affirm Card and Adaptive Checkout.
• Maintain the core platform and merchant integrations.

This investment is crucial because their proprietary AI-driven underwriting is what allows them to offer a no-late-fee product while managing risk better than traditional lenders.

Processing and servicing expenses for managing the loan portfolio.

These are the operational costs of running the loan book, essentially the back-end plumbing. This includes expenses for payment processing, loan servicing, and collections activities. For fiscal year 2025, these costs amounted to $457.85 million.

As the Gross Merchandise Volume (GMV) grows-which was over $36.7 billion in FY2025-these expenses naturally rise. The key is that they must grow slower than GMV and revenue, indicating improved operational efficiency and scale. The goal is to automate as much of the loan lifecycle as possible, pushing this cost component down as a percentage of total revenue.

Next step: Finance needs to model the sensitivity of the $425.45 million in Funding Costs to a 50-basis-point change in the Fed Funds Rate by the end of the month.

Affirm Holdings, Inc. (AFRM) - Canvas Business Model: Revenue Streams

You need to know exactly where the money comes from to assess Affirm Holdings's long-term viability, and the good news is their revenue model is highly diversified. The company generated a total revenue of approximately $3.22 billion for the fiscal year ended June 30, 2025, which represents a strong 39% increase year-over-year, showing a clear path to scale.

This isn't a single-stream business; it's a portfolio of income sources that de-risks their model, balancing merchant fees, consumer interest, and capital markets activity. The key takeaway is that they are successfully monetizing both the merchant side and the consumer side of their Buy Now, Pay Later (BNPL) platform. To be fair, the shift toward profitability in Q4 2025 was a pivotal moment, with net income hitting $69.2 million, a dramatic turnaround from the prior year's loss.

Total Revenue of $3.22 billion for fiscal year 2025

Affirm's total revenue for the fiscal year 2025 reached approximately $3.22 billion, a substantial increase that highlights the rapid adoption of their installment payment solutions across the US and Canadian markets. This top-line growth is a direct result of a record Gross Merchandise Volume (GMV) of $36.7 billion for the year, up 38% year-over-year, driven by their expansive merchant network and a growing base of 23 million active consumers.

Here's a quick math on the quarterly breakdown, which shows the complexity of their revenue structure. The fourth quarter of fiscal year 2025 alone saw total revenue of $876.42 million, demonstrating the power of their multi-faceted revenue streams.

Affirm Holdings, Inc. - Q4 FY2025 Revenue Breakdown (in millions)

Revenue Stream	Amount (Q4 FY2025)	YoY Growth (Q4 FY2025)	Description
Interest Income	$419.1 million	+24%	Interest charged to consumers on loans held on Affirm's balance sheet.
Merchant Network Revenue	$239.45 million	+56.2% (Network Revenue)	Fees paid by merchants for facilitating transactions and taking on credit risk.
Gain on Sales of Loans	$116.9 million	+67%	Profit realized from selling loans to third-party investors, like securitization trusts.
Card Network Revenue	$67.11 million	N/A (Included in Network Revenue)	Fees generated from the use of the Affirm Card.
Servicing Income	$33.9 million	+22.8%	Fees earned for managing and servicing off-balance sheet loan portfolios.
Total Revenue	$876.42 million	+33%

Merchant Network Revenue (fees paid by merchants)

Merchant Network Revenue is the core fee-based income, where Affirm charges merchants a fee for the service of offering installment payments to their customers. In Q4 FY2025, this revenue stream was a significant component, reaching $239.45 million. This revenue is crucial because it aligns Affirm's success directly with the growth of its merchant partners, which now number over 419,000.

This stream is often higher on 0% Annual Percentage Rate (APR) loans, as the merchant pays a larger fee to subsidize the consumer's interest. It's a strategic choice, so the company accepts a lower Revenue Less Transaction Costs (RLTC) percentage on these shorter-duration, 0% APR products to drive massive transaction volume and onboard new customers.

Interest Income on loans held on the balance sheet ($419.1 million in Q4 FY2025)

The traditional banking component of the business is Interest Income, which is the interest charged to consumers on loans that Affirm chooses to keep on its own balance sheet. This income stream grew by 24% year-over-year in Q4 FY2025 to $419.1 million, fueled by a 24% increase in the value of loans held for investment. This is a defintely important stream, but it comes with the risk of credit losses.

Affirm's underwriting model, which uses artificial intelligence (AI) to assess risk, allows them to manage this risk effectively. The strategic mix shift toward 0% APR products, which represented 29% of GMV in Q4 FY2025, actually helps here because the allowance rate for losses on those loans is roughly 60% lower than for interest-bearing loans.

Gain on Sales of Loans to third-party investors ($116.9 million in Q4 FY2025)

This revenue stream reflects Affirm's role as a loan originator and capital markets operator. It's the profit earned when they sell loans to third-party investors, such as through securitizations. This is a critical source of non-interest income that manages liquidity and reduces credit risk exposure on Affirm's balance sheet. The gain on sales of loans jumped a remarkable 67% in Q4 FY2025 to $116.9 million, indicating strong demand for Affirm's loan assets in the capital markets.

The strong increase here signals two things: improved loan sale volumes and better pricing for their loan portfolios. It's a sign of capital market confidence in their underwriting quality.

Servicing Income from managing off-balance sheet loan portfolios ($33.9 million in Q4 FY2025)

Servicing Income is the fee Affirm earns for managing the loans it has sold off its balance sheet to third-party investors. This includes collecting payments, handling customer service, and managing delinquencies. For Q4 FY2025, this income stream grew 23% to $33.9 million. This revenue is low-risk and highly valuable because it provides a steady, recurring fee based on the size of the off-balance sheet portfolio, which remained stable at approximately a 2% annualized yield.

• Merchant Network Revenue: Fees from retailers for the payment service.
• Interest Income: Interest paid by consumers on loans held by Affirm.
• Gain on Sales of Loans: Profit from selling consumer loans to investors.
• Servicing Income: Fees for managing loans held by third parties.