Affirm: The Next American Express (Audio)
Fraser Christie, founder and CIO of Sandstone Global Investment, analyzes Affirm's transition from a beaten-down post-IPO consumer lender into an internet-native payment network processing over $50 billion in GMV. The discussion explores Affirm's transaction-level underwriting, capital markets funding redundancy, competitive advantages over Klarna, and growth drivers including the Affirm Card and agentic commerce.
- Affirm splits its loan funding 50/50 between off-balance-sheet facilities (forward flow and static ABS) and on-balance-sheet facilities (warehouse lines and revolving ABS). Read →
- Affirm processes over $50 billion in annual gross merchandise volume while growing faster than 30 percent year over year. Read →
- Interest-bearing installment loans generate 70% of Affirm's $50 billion in gross merchandise volume (GMV), powering the company's profitability. Read →
- Half of US credit card holders carry a revolving balance, averaging $7,000 in compounding debt. Read →
- Max Levchin incubated Affirm inside HVF a decade after leaving PayPal, targeting consumer credit after personal frustration with traditional credit bureaus. Read →