Affirm

Merchant discount rates and consumer APRs are constrained by intense competition from card issuers, large wallets, and other BNPLs. Affirm’s ability to price risk is real, especially on longer‑duration loans, but headline merchant fees are sensitive to competitive bids.

Take rate stability improving toward the high‑8% of GMV and the mix shift to interest‑bearing loans and card interchange help, yet we do not see unconstrained pricing freedom. Apple Pay placement could raise conversion and justify value‑based pricing for some cohorts, but platform partners also have leverage.

Overall, we see modest, defendable pricing power, with upside from card and higher‑ticket financing.