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BFD Expert Voices - Private Credit

BFD Expert Voices

Affirm isn't seeing signs of consumer strain despite broader economic uncertainty, COO Michael Linford tells Axios.

Why it matters: As official data remains muddied due to the government shutdown, Affirm offers a read on consumer sentiment heading into the holiday season.

The latest: In its most recent quarter, Affirm posted revenues of $933 million, beating estimates and marking double-digit year-over-year growth.

The company also raised its GMV target for the full year to more than $47.5 billion from its prior $46 billion target.

(This interview has been edited for clarity and brevity.)

Axios: How healthy is the typical Affirm shopper right now?

Linford: "There are two sides to watch: how much consumers are spending and how they're repaying. Both look solid. 

Credit outcomes are below last year's levels, which is exactly where we want them to be. Our unit economics, fully burdened with those credit costs, are actually a bit better than our long-term range."

What about the broader economy? Are you seeing shoppers pull back?

"Not really. We track this pretty closely — even among government workers during the shutdown — and the impact has been minimal. 

Macro indicators are definitely softer, but our own data don't show any slowdown in spending or repayment."

How are the capital markets treating you, given rate volatility?

"Constructively. There's been a flight to quality in credit, and we've benefited from that. Our ABS transactions are priced attractively, and we upsized a deal with New York Life."

You leaned heavily into 0% monthly plans this quarter. Are those really profitable, or mostly for growth?

"They're absolutely profitable. You can't lose money lending and hope to make it up later. We're disciplined about unit economics, and every approved loan needs to be profitable. 

Because our 0% loans are true zeros with no late fees or deferred interest, all revenue comes from merchants. They fund these programs because they drive conversion, engagement, and loyalty."

When those promotions end, do those customers stick around?

"They do. Consumers who come in through 0% offers tend to look and act like the rest of our base — often a little higher-credit, if anything."

Retailers have been offering a lot of 0% promos. Could that change if the economy softens?

"I actually think the opposite. When inflation first hit, a lot of CFOs pulled back on marketing and promo spend. 

But over the past year and a half, merchants have realized they need to do both — manage costs and drive growth. They're back to leaning in on 0% because it's an efficient lever for demand."

Let's talk about the Affirm Card. How does usage differ from traditional checkout loans?

"It removes friction — no copying codes or temporary numbers — and works in store or online. 

Average order values are lower, but we're capturing more transactions per user. People use it several times a month versus a few times a year with traditional loans."

You just renewed your Amazon partnership. What's new there?

"The big thing is certainty — a five-year extension through 2031. That lets us stop worrying about contract negotiations and focus on building deeper integrations and better consumer experiences." 

With retailers offering so many payment options, how do you defend your position at checkout?

Payments have never been a winner-take-all business. We don't rely on exclusivity — we compete on product quality. If our loans perform better and consumers prefer them, we win our share even in a crowded checkout."

Where do things stand with credit reporting for BNPL?

"Affirm has long been the most active furnisher of data to credit bureaus. We're now furnishing all loans, and we believe it's good for the system. 

What's needed is broader industry participation so repayment data shows up consistently in scores. We're optimistic that's coming — the tone from other players and bureaus is much more constructive now."

Affirm's COO on consumer spending

Company's view on consumer sentiment ahead of the holidays

Photo illustration of Michael Linford beside the Affirm logo and abstract shapes.

Photo illustration: Axios Visuals. Photo: Affirm

Affirm isn&#x27;t seeing signs of consumer strain despite broader economic uncertainty, COO Michael Linford tells Axios.Why it matters: As official data remains muddied due to the government shutdown, Affirm offers a read on consumer sentiment heading into the holiday season.

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Affirm's COO on consumer spending

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