Affirm Secures $750M Deal with New York Life Amid Uncertain Lending Climate

Buy now, pay later giant Affirm (AFRM) has expanded its partnership with New York Life Insurance, securing a commitment to purchase up to $750 million of its installment loans through 2026. The deal enables Affirm to offload balance sheet risk while supporting approximately $1.75 billion in annual loan volume.

The agreement builds on New York Life's nearly $2 billion in prior investments into Affirm's loan pools since 2023. It reflects a broader trend of insurers and private credit firms increasing exposure to consumer finance assets, drawn by attractive yields in a higher-rate environment. Competitors like Klarna and PayPal have similarly tapped institutional investors for funding partnerships.

This capital infusion arrives during a precarious moment for consumer lending. While payment delinquency rates show modest improvement, market participants remain wary following recent bankruptcies in subprime auto and credit sectors. The deal demonstrates institutional confidence in Affirm's underwriting despite macroeconomic headwinds.