Affirm has strengthened its collaboration with New York Life by agreeing to the insurer’s purchase of up to USD 750 million of Affirm’s installment loans through December 2026.
This transaction provides off-balance-sheet funding that supports approximately USD 1.75 billion in annual loan volume, thereby improving Affirm’s capacity to underwrite additional consumer loans.
The expanded agreement builds on a relationship initiated in 2023, during which New York Life began investing in asset-backed securities and other loan structures related to Affirm’s lending portfolio. To date, the insurer has directed nearly USD 2 billion in capital into Affirm’s collateral pools.
Strategic implications for fintech-driven consumer lending
The deal reflects a broader trend of established financial institutions deepening their involvement in fintech-enabled consumer credit. With interest rates elevated and public fixed-income yields under pressure, insurers and private-credit investors are increasingly turning toward consumer-finance assets for yield. Affirm’s arrangement with New York Life exemplifies how fintech lenders are using third-party capital to offload credit risk and scale more quickly.
Under the terms of this agreement, Affirm is able to expand its on-platform lending through forward-flow purchases, where New York Life commits to buying newly originated installment loans over a set period. This structure enables Affirm to free capital from its balance sheet, enabling greater origination volume while maintaining regulatory and capital-efficiency objectives.
Beyond this partnership, Affirm has previously established similar funding arrangements with insurers and investment firms, mirroring a pattern of BNPL lenders drawing on non-bank funding sources to underpin growth.
Data and lending performance
Affirm has financed more than USD 100 billion in consumer transactions since its founding. As of mid-2025, the company reported gross merchandise volume (GMV) of approximately USD 36.7 billion, revenue of about USD 3.2 billion, and total assets of USD 11.1 billion. Roughly 90% of borrowers are repeat customers, a figure cited as a key driver of Affirm’s strong credit-performance metrics.
The company’s charge-off rates have remained relatively stable even amid fluctuating macroeconomic conditions. According to Affirm’s latest quarterly filings, delinquency rates for loans over 30 days past due were below 2%, compared with industry averages closer to 3.5% for unsecured consumer credit. This consistent performance has helped Affirm attract repeat institutional partners such as New York Life.
From a funding perspective, the new USD 750 million commitment from New York Life enables support for USD 1.75 billion of new consumer loan originations each year, effectively unlocking a multiple of origination capacity relative to the committed funding.
The expanded partnership between Affirm and New York Life highlights how fintech lenders are tapping institutional capital to scale consumer-lending operations efficiently. The scale of capital commitment and origination capacity underscores how fintech and traditional financial firms are increasingly collaborating to reshape the consumer-finance landscape.
