Affirm CEO says American consumers are healthy

Affirm CEO Max Levchin has expressed confidence in the resilience of the American consumer, emphasizing continued spending and repayment activity despite broader economic concerns. Levchin highlighted that Affirm’s data shows "every metric" pointing to a robust consumer base, with individuals maintaining shopping habits and meeting financial obligations on time. This sentiment aligns with Affirm’s recent financial performance, which included a 35% increase in gross merchandise volume and a 33% rise in revenue during its latest quarter.

Levchin’s remarks come amid a backdrop of declining consumer sentiment, as reflected in the University of Michigan’s May survey, which recorded a record low. Despite this, Levchin noted that Affirm has not observed a decline in spending activity or credit quality. He pointed to strong demand in categories such as travel, ticketing, and home goods, with consumers increasingly financing high-cost items like concert tickets and summer travel.

The CEO also emphasized the role of Affirm’s proprietary AI underwriting in maintaining credit quality, calling it a key differentiator in the buy now, pay later (BNPL) market. While macroeconomic indicators remain mixed, Levchin remains optimistic about the long-term health of the consumer, citing a "powerful defensive moat" built through brand loyalty and merchant partnerships.