Affirm Interesting Key Facts
- Affirm was founded on January 1, 2021 by Max Levchin, Nathan Gettings, Jeffrey Kaditz, and Alex Rampell.
- Max Levchin was a co-founder of Paypal and is considered a member of the Paypal Mafias.
- Max Levchin also founded Slide and HVF as well as a key investor on Yelp.
- The company has been in partnership with Walmart since 2019.
- The company also partnered with Shopify, BigCommerce, and Zen-Cart.
- When the company opened for its IPO, they raised $1.2 billion on just the first day.
- Amazon made Affirm their exclusive buy now, pay later partner in the US through 2023.
- In May 2022, Affirm signed a partnership deal with Stripe, Inc. to make its checkout available for Stripe users in the U.S.
Affirm: Company Overview (About)
At a glance:
What is Max Levchin’s net worth?
When Affirm became public in 2021 and made Max Levchin an instant billionaire. His net worth is $2.2 billion in 2022, a decrease of around $800 million from what he had back in 2021.
When did Affirm go public?
Affirm began trading on NASDAQ with the symbol AFRM on January 13, 2021. On that day, the company raised around $1.2 billion in its IPO. The next day, the price of shares had doubled making Levchin’s stake in the company $2.5 billion.
How does Affirm work?
Affirm is a buy-pay-later-company, where shoppers or consumers can buy stuff and pay later. This is how it works, consumers can register on their website or mobile app, and it works the same.
After registering, you are ready to shop. It’s that simple. After choosing what you want from their platform’s hundreds of thousands of shops from merchant partners, Affirm would ask you to choose whether you will have their “4 interest-free payments” or “monthly installments”. You choose a plan and you pay that amount on a scheduled date.
And that’s about it. That’s how Affirm works.
How does Affirm make money?
Affirm does not charge its consumers any late fees at all. Merchants also pay no integration fees, annual fees, or monthly fees for using their services. Affirm earns revenue in five ways:
- Merchant discount rate (MDR) that they generate from their merchants whenever a transaction is being facilitated that’s typically 5.99%.
- Affirm generate revenue through simple interest-bearing fees which would be $0.30 per transaction.
- Affirm earn interchange fees whenever consumers use their virtual card over established card networks.
- Affirm earn by selling a portion of the assets originated in their platform to third-party investors wherein they can recognize a loss or gain on the sale of these loans.
- Affirm also makes money by providing loan services to their consumers on behalf of third-party investors.
What payment options does Affirm offer?
Affirm commonly offers two types of payment options:
- Pay-in-4 instalments that are paid every 2 weeks claim 0% APR. Most of those shops that offer 0% APR require a 25% down payment upon approval and a 25% payment every 2 weeks until the full value is paid off.
- Monthly payments are paid monthly with a 15% APR. This option allows consumers to pay in the span of 3 months, 6 months, or 12 months depending on the merchant. Some even allow consumers to pay for as long as 48 months.
Aside from these two, consumers can also be financed by Affirm with purchases up to $17,500.
Also, the downside that most people find in Affirm is that it has a high interest that climbs up to 30%. However, with the length that some merchants allow, 30% is just fair and very affordable.
What is Affirm’s revenue?
Affirm generated a revenue of $1.35 billion at the end of fiscal year on June 31, 2022. It increased by 55.01% in year-over-year growth.
Source: Google Finance
Affirm revenue breakdown by segment
At the end of the fiscal year on June 30, 2022, Affirm’s revenue in the merchant network segment was $458.51 million, and $100.70 million for the virtual card network segment.
Affirm revenue breakdown by region
These are Affirm’s revenue per region at the end of each fiscal year.
Affirm: operating expenses
Affirm spent $2.21 billion on their operations at the end of fiscal year 2022. It is 76.80% more than they spent at the end of the fiscal year on June 30, 2021.
Affirm Expenses by Type
How much did Affirm spend on advertisement?
Affirm spent $74 million on advertisements in 2022. This is a large increase compared to their advertising expense in 2019, about 28 times more money spent.
Affirm had made $703.14 million in profits at the end of the fiscal year 2022.
Affirm Funding History
Affirm raised a total of $1.5 billion over 12 funding rounds. Their latest funding was on January 13, 2021 for their Post-IPO Equity round.
Affirm had only made 2 investments so far. These are:
Affirm: Market Cap
Source: Google Finance
What is Affirm’s market share?
In 2021, Affirm had a market share of 36%, dominating the BNPL industry.
However, in 2022, Klarna took over the lead where Affirm only had 19.6% in market share.
Who invested in Affirm?
Affirm had a total of 27 investors through the years. The table below shows us their most recent investors.
What is Affirm’s gross merchandise value (GMV)?
Affirm had a gross merchandise value (GMV) of $17.00 billion at the end of the fiscal Year on June 30, 2022, more than twice what they processed in 2021.
How many active users does Affirm have?
There are 13.98 million consumers using Affirm at the end of the fiscal year 2022.
How many active users does Affirm have? (Quarterly)
Affirm also stated that there are more than 15 million consumers using their platform as of December 2022.
Affirm Consumers’ Age Distribution
Affirm Consumers’ Gender Distribution
How many transactions does each active Affirm consumer make?
According to Affirm, each active consumer has an average of 3 transactions per year.
How many merchants are there in Affirm?
As of December 2022, there are 245,000 active merchants in Affirm.
Who are Affirm’s largest merchant partners?
With over 245,000 merchants on their platform, Affirm has partnered with the largest sellers in the world. They are Amazon’s exclusive BNPL partner through January 2023. They are also partnered with Gucci, Walmart, and others. Here are some of their largest merchant partners.
What are the categories of products in Affirm?
- Beauty & Health
- Black-owned businesses
- Events & experiences
- Fitness & gear
- Home & furniture
- Toys & games
What is Affirm’s merchant retention rate?
Affirm reported that their dollar-based merchant retention rate has been constantly exceeding 100% since 2016.
What is Affirm’s loan-based consumer retention rate?
At the end of fiscal year on June 30, 2022, 81% of Affirm’s loan transactions are driven by repeat consumers, an increase of 9% compared to what the company had at the end of fiscal year 2021.
How many transactions were completed at Affirm?
Affirm had a total of 34.29 million transactions on March 2022. These are calculated by multiplying the number of consumers with the average transaction per customer.
How many people work at Affirm?
As of 2022, there are 2,552 employees working at Affirm.
Which countries use Affirm the most?
Where is Affirm available (in which countries)?
Affirm works with U.S.-based and Canada-based businesses. As well as businesses based outside the U.S. as long as these conditions are met:
- The business has a U.S. or Canadian entity.
- The majority of their customers have a billing address in the U.S. or Canada.
- The business has a U.S. or Canadian bank account where Affirm can deposit funds.
Furthermore, the company can only provide their pay-over-time solution to U.S. and Canadian shoppers.
How much time do people spend on affirm.com?
People spend an average time of 00:02:56 on their visits on affirm.com.
Affirm Mobile App Statistics: Android vs iOS
These are the key stats and key info on Affirm mobile app on Android as of December 2022:
These are the key stats and key info on Affirm mobile app on iOS as of December 2022:
Affirm Website Traffic Analysis
Affirm Website Traffic Sources
Affirm Traffic Source: Desktop vs Mobile