Affirm (NASDAQ: AFRM), the payment network that enables consumers and helps merchants drive growth, announced an expansion of their long-term capital partnership with New York Life, America’s mutual life insurance company. Under the said agreement, New York Life is now set to purchase Affirm’s installment loans on a “forward-flow basis” between now and December 2026 with an amount outstanding of “up to $750 million.”
This provides off-balance-sheet funding that can support approximately $1.75 billion in consumer loan volume per year, helping Affirm offer more flexible and so-called “transparent” payment options.
The extended partnership leverages the strengths of Affirm and New York Life.
As an underwriter, Affirm claims it offers a “responsible and transparent” way to pay over time. As one of the world’s investment platforms, New York Life brings considerable scale as well as private credit structuring expertise.
Before this recent expansion, New York Life has reportedly invested around $2 billion in Affirm collateral, including via the firm’s asset-backed securitizations.
Michael Linford, Chief Operating Officer, Affirm said that they are pleased to expand their relationship with such a trusted and “forward-thinking partner in New York Life.” Via their collaboration, they will be even better positioned to responsibly “increase access to our flexible and transparent payment options.”
Affirm reports that it saved consumers more than $460 million in so-called late fees. By selecting Affirm rather than the more traditional revolving credit card debt, U.S. consumers could potentially save “5-30% annually on their total cost of credit – roughly $18 billion in 2024 alone.”
Affirm’s mission is to provide “honest financial products that improve lives.”
By creating a new type of payment network—one based on maintaining trust, greater transparency, and putting consumers first—they help consumers with spending and saving in a responsible manner, and give businesses the tools to support growth. Unlike various credit cards and other pay-over-time solutions, they claim to never charge late or “hidden” fees.
