Affirm is locking in more long-term fuel for its “buy now, pay later” engine. The company announced an expanded capital partnership with New York Life, America’s largest mutual life insurer, that will fund up to $750 million in Affirm installment loans through 2026.

The deal, structured as a forward-flow loan purchase agreement, gives Affirm off-balance-sheet funding to support roughly $1.75 billion in annual consumer loan volume — a major liquidity boost for the fintech as it scales its zero-late-fee, transparent lending model.

Building on a $2B Foundation

The two companies are hardly strangers. New York Life has already invested nearly $2 billion in Affirm collateral, including through asset-backed securitizations (ABS) that underpin many of the fintech’s loan pools. This expanded commitment signals not just confidence in Affirm’s credit performance, but a broader institutional shift: insurers and asset managers are increasingly turning to private consumer credit as a source of stable, data-driven returns.

“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,” said Brendan Feeney, Managing Director at New York Life.

Why It Matters: Liquidity Meets Longevity

For Affirm, the partnership helps diversify funding sources at a time when the BNPL sector is maturing and facing tighter capital markets. By leaning on a heavyweight like New York Life, Affirm gains more predictable, cost-effective funding—crucial for maintaining profitability in a business built on installment loan margins.

“Through our collaboration, we’ll be even better positioned to responsibly increase access to our flexible and transparent payment options,” said Michael Linford, Affirm’s COO.

Context: The BNPL Model Evolves

Affirm’s expansion comes as the buy now, pay later (BNPL) industry consolidates and evolves beyond short-term retail installments into embedded finance and credit-as-a-service models. Rivals like Afterpay (Block) and Klarna have tightened lending standards amid rising delinquencies, while Affirm has leaned on its underwriting algorithms to maintain performance across economic cycles.

The company’s strategy has increasingly focused on deep merchant integrations (including partnerships with Amazon and Shopify) and on building institutional-grade funding pipelines to sustain growth without relying too heavily on balance sheet risk.

New York Life’s participation adds both credibility and capital stability—two things the BNPL industry needs as it seeks mainstream acceptance.

Financial Impact and Industry Implications

Affirm says its model has saved consumers more than $460 million in late fees, while offering a clearer alternative to revolving credit. The firm estimates that by using Affirm instead of credit cards, U.S. consumers could collectively save 5–30% annually on the total cost of borrowing—roughly $18 billion in 2024 alone.

For institutional investors, Affirm’s partnership represents a growing appetite for structured private credit linked to consumer lending, an area expected to expand significantly as yield-hungry insurers and funds seek alternatives to traditional bonds.

The Bottom Line

Affirm’s deepened alliance with New York Life is more than a funding deal—it’s a vote of confidence in the BNPL model’s long-term sustainability. By pairing tech-driven lending with institutional-grade financing, Affirm is signaling that the next phase of BNPL growth will be defined less by buzz and more by balance sheet strength.