The Affirm Holdings Inc. business model is built on facilitating consumer purchases through installment financing integrated at the point of sale. The company partners with merchants to offer financing options that increase conversion rates and basket sizes. Revenue is generated from merchant discount fees, interest charged to consumers on certain loan products, and servicing income. Affirm also securitizes loans and partners with institutional investors to fund receivables, reducing balance sheet risk. A key aspect of the model is its data-driven underwriting, which allows real-time credit decisions based on transaction-level insights. This enables higher approval rates while managing risk effectively. By aligning its revenue model with merchant success and consumer satisfaction, Affirm creates a mutually beneficial ecosystem that supports long-term scalability.