Affirm Holdings (AFRM)

Affirm works with merchants across online and in-store retail, including categories such as electronics, travel, home goods, apparel, fitness, and services. Its platform offers both merchant-subsidised, zero-interest instalment plans and interest-bearing loans that are underwritten on a transaction-by-transaction basis. The interest-bearing side accounts for the larger share of transaction volume and is an important driver of revenue.

The company earns money from several sources, including merchant fees, interest income, servicing income, and revenue associated with its consumer financial products. Affirm also offers the Affirm Card, a debit-linked product that extends its instalment-payment capabilities beyond partner merchant checkouts.

Affirm operates primarily in the United States, while also serving markets such as Canada and the United Kingdom. Its business depends on consumer spending trends, merchant adoption, funding costs, credit performance, and regulatory scrutiny of instalment lending. For investors, AFRM represents exposure to the intersection of digital payments, consumer credit, e-commerce, and embedded finance, with growth potential tied to both retail partnerships and the broader acceptance of point-of-sale financing.