Affirm has bolstered its partnership with New York Life, agreeing to let the insurer purchase up to USD 750 million of Affirm’s installment loans through December 2026.
This arrangement offers off-balance-sheet financing that supports around USD 1.75 billion in annual loan transactions, thereby enhancing Affirm’s ability to issue more consumer loans.
Building on their initial collaboration initiated in 2023, New York Life has continued to invest in asset-backed securities and related lending structures, with nearly USD 2 billion invested so far into Affirm’s collateral pools.
The strategic significance of fintech-driven consumer credit
This transaction signifies a broader trend where traditional financial institutions are deepening their engagement with fintech solutions for consumer lending. Given high interest rates and weak public fixed-income yields, insurers and private-credit investors are increasingly seeking out consumer finance assets to generate returns.
Affirm’s deal with New York Life illustrates how fintech lenders utilize third-party financing to manage credit risk and accelerate growth more effectively.
Under the terms of this agreement, Affirm can expand its on-platform lending through forward-flow purchases. New York Life will buy newly originated installment loans over a specific period, allowing Affirm to release capital from its balance sheet, thereby boosting origination volumes while adhering to regulatory and capital management objectives.
Data and lending performance
Affirm has facilitated more than USD 100 billion in consumer transactions since its inception. By mid-2025, the company reported gross merchandise volume (GMV) of approximately USD 36.7 billion, revenue of about USD 3.2 billion, and total assets of USD 11.1 billion.
About 90% of borrowers return as repeat customers, a factor that has contributed to Affirm’s strong credit performance metrics. Despite fluctuating economic conditions, charge-off rates have remained steady. According to the latest quarterly filings, delinquency rates for loans over 30 days past due were below 2%, compared to an industry average of about 3.5% for unsecured consumer credit.
The new USD 750 million commitment from New York Life will enable support for approximately USD 1.75 billion in new consumer loan originations annually, effectively increasing Affirm’s origination capacity by a substantial multiple relative to the committed funding.
The expanded partnership between Affirm and New York Life underscores how fintech lenders are leveraging institutional capital to scale their operations more efficiently. The scale of the capital commitment highlights the evolving collaboration between fintech and traditional financial institutions in reshaping consumer finance.
