Ever wonder if “buy now, pay later” is truly booming? Affirm’s latest numbers are in, and they’re exploding! Active card users are up by an incredible 97%, with GMV and revenue climbing significantly. Is this the future of flexible spending, or just a fleeting trend?

Affirm has demonstrated significant financial strength and market acceleration, reporting record results that underscore the growing consumer adoption of its buy now, pay later (BNPL) services.

The company’s recent earnings report revealed a remarkable surge across key business metrics, with gross merchandise volume (GMV) climbing an impressive 34% to $10.4 billion and revenues increasing by 33% to $876 million, showcasing robust market demand and operational efficiency in installment payments.

A pivotal highlight was the explosive growth in active cardholders, which surged by 97% to reach 2.3 million. This expansion was further bolstered by a 132% increase in card GMV to $1.2 billion and a staggering 187% year-on-year growth in in-store spending, driven largely by 0% APR monthly installment loans.

Beyond card specifics, Affirm’s overall active consumer base, excluding the divested Returnly business, expanded by 24% to 23 million, while its active merchant network also grew by 24% to 377,000. These figures, according to CEO Max Levchin, reflect strong momentum in both the U.S. and Canadian consumer markets.

Levchin emphasized that the acceleration in GMV and record usage indicates consumers are increasingly utilizing Affirm for a wider range of purchases. He also addressed the transition of 0% APR users to interest-bearing products, noting that while 0% loans are less profitable, the positive user experience often leads to conversion to more profitable interest-bearing loans and repeat usage.

Discussion also touched upon Affirm’s strong funding capacity, which increased by 55%, and the competitive landscape of alternative credit. The CFO affirmed a mindful approach to capital markets and partner selection amidst rising competition in the financial technology sector.

The Affirm Card remains a significant area of investment for the company, despite a current attach rate of approximately 10%. Levchin reiterated the vision for 10 million active card users with a targeted GMV of $7,500, highlighting efforts to enhance consumer engagement and expand usage beyond online integrations, such as for essential purchases like gas.