Affirm Tops Expectations in Q1 Earnings

Hey Payments Fanatic!

Affirm, the buy-now-pay-later giant, reported stronger-than-expected results for Q1, surpassing forecasts on both revenue and earnings.

• Loss per share: 31 cents vs. 35 cents expected
• Revenue: $698 million vs. $664 million forecast
• GMV: $7.6 billion, up 35% year-over-year

Affirm’s revenue rose 41% to $698 million, while key metric RLTC reached $285 million, beating guidance. With partnerships like Apple, Amazon, and Shopify, Affirm continues to expand its reach and remains focused on GAAP profitability by Q4 2025.

The company expects Q2 revenue between $770 million and $810 million, with GMV projected at $9.35 billion to $9.75 billion, further solidifying its growth momentum.

Catch more updates below?? and see you tomorrow!

Cheers,

Marcel

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INSIGHTS

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GOLDEN NUGGET

??What is ?????? ??????, ?????? ?????????? (BNPL), and how does it work?

Here is a step-by-step guide:

Todays “Weekend FinTech Education” update is all about one of the most discussed subjects in FinTech in recent years: ?????? ?????? ?????? ??????????.

The growth of BNPL has been dramatic in recent years. The BNPL provider represents the primary interface between the merchants and the customers for both eCommerce and POS (Point of Sale).

The diagram above shows how the process works:

? Step 0. Bob registers with AfterPay. An approved credit/debit card is linked to this account.

? Step 1. The "Buy Now, Pay Later" payment option is chosen by Bob when he wants to purchase a $100 product.

? Steps 2-3. Bob's credit score is checked by the BNPL provider, and the transaction is approved.

? Steps 4-5. A BNPL provider grants Bob a $100 consumer loan, which is usually financed by a bank. A total of $96 out of $100 is paid to the merchant immediately (yes, the merchant receives less with BNPL than with credit cards!) Bob must now pay the BNPL provider according to the payment schedule.

? Step 6-8. Bob now pays the $25 down payment to BNPL. Stripe processes the payment transaction. It is then forwarded to the card network by Stripe. The card network must be paid an interchange fee since this goes through them as well.

? Step 9. Bob can now receive the product since it has been released.

? Steps 10-11. The BNPL provider receives installment payments from Bob every two weeks. Payment gateways process installments by deducting them from credit/debit cards.

I highly recommend the complete deep dive article by ByteByteGo for more interesting info on this topic .

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