Affirm is expanding its partnership with New York Life Insurance, marking another milestone in the growing alignment between traditional finance and fintech-driven consumer lending.
Under the new deal, New York Life will purchase up to $750 million worth of Affirm’s installment loans through 2026 — a move that strengthens Affirm’s funding pipeline and supports approximately $1.75 billion in annual loan originations.
The partnership, which began in 2023 when New York Life started investing in Affirm’s asset-backed securities and structured lending pools, has already funneled nearly $2 billion into the fintech’s collateral-backed assets. The expansion signals renewed institutional confidence in Affirm’s lending model at a time when fintech companies are under pressure to secure reliable, long-term funding amid volatile capital markets.
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“We are proud to expand our relationship with such a trusted and forward-thinking partner in New York Life,” said Michael Linford, Chief Operating Officer, Affirm. “Through our collaboration, we will be even better positioned to responsibly increase access to our flexible and transparent payment options.”
Affirm has already financed more than $100 billion in transactions, with over 90% of its borrowers classified as repeat users — a metric the company touts as evidence of disciplined underwriting and strong customer retention.
The latest move comes amid a broader shift in institutional investment strategies, as insurers, private credit funds, and pension managers increasingly target consumer lending assets to capitalize on higher yields in a prolonged high-interest-rate environment. Insurers like New York Life see structured fintech loans as offering better risk-adjusted returns than traditional bonds or treasuries, especially given the predictable cash flows tied to installment loan repayments.
“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, New York Life. “We’re excited to take this next step in our relationship, which exemplifies how we collaborate with industry leaders to invest in growing, high-quality assets.”
The broader trend has seen several insurers and asset managers strike similar deals with leading fintechs. Affirm has established additional funding lines with Liberty Mutual Investments, PGIM, and Sixth Street Partners, securing billions in capacity to support its lending operations.
Rival Klarna has entered comparable loan-sale agreements with Nelnet and Pagaya, while PayPal’s $7 billion arrangement with Blue Owl Capital — followed by Blue Owl’s joint venture with Meta to finance the $27 billion Hyperion data center project in Louisiana — underscores the growing integration between fintechs and institutional finance.
These partnerships are becoming vital as consumer lenders navigate an uncertain macroeconomic environment. Although U.S. consumer spending has remained resilient, inflationary pressures and high borrowing costs have tightened credit conditions, prompting fintechs to rely increasingly on external investors for liquidity. Delinquency rates, while stabilizing, remain above pre-pandemic levels in some credit categories, leading to heightened investor scrutiny over underwriting quality and loan performance.
Affirm has managed to maintain strong credit metrics relative to industry peers, helped by its focus on prime and near-prime borrowers and its data-driven risk assessment tools. The company has also expanded partnerships with major retailers such as Amazon, Walmart, and Shopify, providing installment options to millions of consumers at checkout — a strategy that continues to drive transaction growth and steady revenue.
Analysts view the Affirm–New York Life partnership as part of a maturing BNPL sector where technology firms increasingly act as loan originators and distribution platforms, while established financial institutions supply capital and risk management expertise. The model allows fintechs like Affirm to scale responsibly without over-leveraging their balance sheets.
Financial analysts have noted that institutional partnerships are the next phase of fintech evolution — where growth becomes sustainable, not just fast. The collaboration, they said, demonstrates how legacy financial giants are adapting to the digital lending age by working alongside, rather than against, fintech disruptors.
For Affirm, the partnership represents both stability and validation. As the BNPL industry faces headwinds in the U.S. and abroad, aligning with a century-old insurer like New York Life provides credibility that could help reassure investors and regulators that fintech lending can operate safely within traditional finance frameworks.