Affirm has partnered with fintech platform Esusu to pilot a zero-fee rent payment splitting program that allows eligible renters to divide their monthly rent into two equal biweekly installments at 0% APR. The pilot carries no hidden fees, late charges or compounding interest, and uses Affirm’s individual underwriting process to approve only those payments renters can responsibly afford. Esusu will report on-time rent payments to major credit bureaus, enabling participants to build credit while better aligning housing costs with biweekly paychecks.

Over the past year, Affirm’s gross merchandise volume (GMV) surged from $20.2 billion to $36.7 billion, a 38% increase driven by rising BNPL adoption among younger consumers. No-interest loans alone grew 74% in the quarter ending September 30. Strategic integrations with major e-commerce platforms such as Amazon and Shopify, alongside digital wallet partnerships, contributed to a 70% increase in total partner volume, as retailers tapped Affirm’s installment options to boost conversion rates and raise average order sizes.

Affirm significantly reduced its operating loss from $1.2 billion in 2023 to $87 million last year, and achieved its first profitable quarter on a GAAP basis in the most recent period, posting operating income of $63.7 million. The company continues to diversify revenue streams, earning merchant discount rates on short-term, interest-free loans as well as interest income on longer-term installment plans with APRs up to 36%. This shift toward profitability underscores management’s commitment to sustainable growth.

Looking ahead to fiscal 2026, Affirm projects GMV of $47.5 billion and operating margins of 7.5%. The company stands to benefit if traditional lenders scale back credit availability for near-prime and subprime borrowers, especially in light of regulatory discussions around credit card interest rate caps. With its expanding partnerships, profitable first quarter, and innovative product rollout in rent payments, Affirm presents a strategic opportunity for investors tracking the continued expansion of the buy-now, pay-later sector.