Who uses Affirm, and why?

Bloomberg iVX372
Apr 3 18 Comments

I'm trying to understand how Affirm raised a fresh funding round valuing the company at $2.9B, when I haven't encountered a single Affirm customer (be it a person or company).

More to the point, how many all-time transacting users does the company have, and how much annual revenue?

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TOP 18 Comments
  • New gSxi37
    There are many many many people who do not have a 12-15k monthly paycheck. Affirm's customer base is that. Who make decent monthly to manage a family of 4 but not enough to buy something full in cash.

    Heck, even I use affirm to buy some things as it gives me 0Percent interest. I put the principal in a moneymarket
    Apr 311
    • Affirm /93?
      Our underwriting credit model’s better accuracy is largely what lets us grant lower interest rates. I suppose yes, there’s less bloat than major lenders too.
      Apr 3
    • Bloomberg iVX372
      OP
      Does Affirm measure or use the FICO score, or has it replaced that with its own metric?
      Apr 3
    • Affirm wn8
      Our own metric
      Apr 3
    • Bloomberg iVX372
      OP
      @gSxi37 how do you get 0% interest on a loan from Affirm? Their website advertises 10%-30% APR interest rates
      Apr 4
    • Bloomberg iVX372
      OP
      So I have to sell myself some product or service on my own website in order to get the 0% interest deal?

      Are you doing this successfully? If so, how long does it last? After the next market crash, I'd love to leverage my ETF investments with a low-interest loan
      Apr 4
    • Affirm usurkar
      No. You will see 0% offers at some of our partner merchants during checkout.
      Apr 5
    • Bloomberg iVX372
      OP
      Do any of those 0% partner merchants sell money market or ETF investments? If not, I don't see how this could work as an investment strategy. If you purchase a product on a loan, you have to immediately sell it (before any depreciation) in order to invest the entire loan principal in a money market or ETF
      Apr 5
    • Affirm ohnoeshalp
      You realize there is something known as cost price and sell price?
      Apr 5
    • Bloomberg iVX372
      OP
      How does that help? Consumers can only buy products at sell price, not cost price. I don't see how this changes the fact I pointed out above
      Apr 5
  • New naduruk
    Don’t look too much.

    Answer is Max Levchin
    Apr 32
    • Bloomberg iVX372
      OP
      I was wondering if the fact that he founded PayPal is the only reason for the $2.9B valuation, or if the company also demonstrates solid business fundamentals.
      Apr 3
    • Affirm froggman4
      I think we’re ok
      Apr 4
  • Credit Karma kekekaka
    It’s not for highly paid software engineers, that’s why.
    Apr 30
  • New dluz61
    From what I've over heard from the affirm folks, it sounds like they're got a pretty solid customer base. I know my company briefly was working on a product with them for our users
    Apr 30
  • If you’re raising $300M and at $2.9B, that’s not based on name.
    Apr 30

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