Affirm, a payment network empowering consumers and supporting merchant growth, has announced an expansion of its long-term capital partnership with New York Life, America’s largest mutual life insurance company. Under the expanded agreement, New York Life will purchase Affirm’s installment loans on a forward-flow basis until December 2026, with an amount outstanding of up to $750 million. This arrangement provides off-balance-sheet funding that can support approximately $1.75 billion in consumer loan volume per year. This expansion is designed to enable Affirm to offer more flexible and transparent payment options to consumers.
The partnership leverages the distinct strengths of both organizations. Affirm operates as an industry-leading underwriter, providing a transparent method for consumers to pay over time without incurring late fees or hidden charges. New York Life, recognized as one of the world’s leading investment platforms, contributes significant scale and expertise in private credit structuring. Prior to this latest expansion, New York Life had invested nearly $2 billion in Affirm collateral, which included participation in the company’s asset-backed securitizations.
Michael Linford, Chief Operating Officer at Affirm, commented on the development, stating, “We are proud to expand our relationship with such a trusted and forward-thinking partner in New York Life. Through our collaboration, we will be even better positioned to responsibly increase access to our flexible and transparent payment options.”
Brendan Feeney, Managing Director at New York Life, also provided a statement: “As we continue to deploy capital to create lasting value for our policy owners, Affirm has distinguished itself by delivering superior credit outcomes that generate attractive returns. We’re excited to take this next step in our relationship, which exemplifies how we collaborate with industry leaders to invest in growing, high-quality assets.”
Affirm’s mission is to deliver financial products designed to improve lives by providing a clear and honest way to pay over time. The company reports that it has saved consumers over $460 million in late fees. By offering an alternative to revolving credit card debt, Affirm suggests that U.
S. consumers could potentially save between 5-30% annually on their total cost of credit, estimated to be around $18 billion in 2024 alone.
