Affirm partners with Fiserv to embed BNPL in debit card programs
Affirm has partnered with Fiserv to embed its buy now, pay later capabilities into debit card programs at Fiserv’s bank and credit union clients, allowing consumers to apply for pay-later plans through existing debit cards. The integration covers real-time underwriting, loan origination and funding, following their 2022 Commerce Hub collaboration.
1. GAAP Profitability and GMV Growth
Affirm reported its eighth consecutive quarter of GAAP profitability, driven by a 42% year-over-year increase in gross merchandise volume (GMV). This growth pushed GMV past $20 billion in the most recent quarter, while net interest margin expanded by 120 basis points to 14.3%, reflecting both disciplined underwriting and rising yields on installment loans. Management attributed margin expansion to a higher proportion of longer-duration financing products and improved loan performance metrics.
2. User Engagement Metrics Surge
Active consumers on the Affirm platform climbed to 24.1 million, up 18% sequentially, as the company deepened engagement through its Affirm Card and merchant integrations. Transactions per user rose 20% year over year, boosted by the rollout of biweekly payment schedules and personalized in-app offers. Notably, adoption of the Affirm Card more than doubled, with issuance jumping 101% in the past twelve months and now accounting for 35% of total GMV. Repeat usage rates climbed to 58%, underscoring growing consumer loyalty.
3. New Strategic Partnerships
In January 2026, Affirm secured two major partnerships to broaden its distribution. First, Bolt selected Affirm as the default BNPL provider across its one-click checkout network, giving merchants like Revolve and Kendra Scott seamless access to installment options. Second, Fiserv announced integration of Affirm’s pay-later platform into debit card programs for over 1,200 community and regional financial institutions, enabling real-time underwriting and funding at point of sale. Together, these agreements are projected to add $4 billion in incremental GMV over the next twelve months.
4. Regulatory and Valuation Challenges
Despite strong fundamentals, Affirm faces regulatory scrutiny of BNPL offerings and pressure on its valuation multiples. Proposed federal guidelines for credit reporting of installment loans could increase cost of capital by 50–75 basis points if reserves must be adjusted. At the same time, peers like Klarna have seen share prices drop more than 40% since IPO, reflecting investor skepticism around sustained profitability in the BNPL space. Affirm’s management has reiterated its focus on unit economics, targeting a 25% EBIT margin by mid-2027 to counter valuation headwinds.