Affirm CEO discusses rising demand for buy now, pay later options

Max Levchin, CEO of Affirm, highlighted a growing trend among retailers to absorb interest costs to provide zero-interest loans, aiming to attract more shoppers. This shift is evident as the buy now, pay later (BNPL) market saw a 16% increase, reaching $67 billion during last year's Cyber Monday, according to Adobe Analytics. Levchin expressed optimism about the future, noting that consumers are increasingly using Affirm for their purchases and managing their payments effectively. In a competitive landscape, Affirm is reportedly outpacing rivals like Klarna Bank AB, which is gearing up for an initial public offering. Levchin emphasized the strong demand for BNPL options, indicating that more retailers are recognizing the benefits of offering these services to their customers. This trend is expected to continue, enhancing the shopping experience for consumers. A recent partnership with Apple Inc. has further bolstered Affirm's position in the market, allowing Apple Pay users to access Affirm's pay-over-time features. This collaboration is seen as a strategic move to expand Affirm's reach and improve its service offerings. Levchin noted that the company has built a reputation for effective partnerships, which has contributed to its growth. Overall, the increasing adoption of BNPL options reflects a significant shift in consumer behavior and retail strategies, with Affirm at the forefront of this evolution. The company's ability to adapt and innovate in response to market demands positions it well for future success in the financial technology sector.