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affirm is expanding its partnership with New York Life Insurance, a move that highlights how traditional financial giants are deepening their exposure to fintech-driven consumer lending.
Under the new agreement, New York Life will purchase up to $750 million worth of Affirm’s installment loans by 2026, providing the payment company with new off-balance sheet funding to support approximately $1.75 billion in annual loan volumes.
The agreement extends a relationship that began in 2023, when New York Life first began investing in Affirm’s asset-backed securities and other loan structures.
To date, insurance companies have poured nearly $2 billion into Affirm’s collateral pool.
The partnership is part of a broader trend of insurance companies and private credit investors moving deeper into consumer finance as rising interest rates make these assets more attractive.
Affirm has secured similar funding lines with Liberty Mutual Investments, PGIM and Sixth Street Partners in recent years, reflecting activity across the buy now, pay later sector.
Klarna We are seeking equal deals from Nelnet and Pagaya, but paypal Signed a $7 billion deal with Blue Owl Capital and established a joint venture with Blue Owl Capital. meta In a $27 billion project to fund and develop a massive Hyperion data center in Louisiana.
Affirm has financed more than $100 billion in transactions to date, and says more than 90% of its borrowers are repeat customers, a key factor in its strong credit performance.
The partnership with New York Life comes as consumer lenders navigate various economic indicators. Spending remains strong and delinquencies are easing, but investors remain cautious following recent subprime auto and consumer loan failures.
