By the numbers: Affirm’s gross merchandise volume (GMV) hit $3.9 billion in its fiscal Q3 (ended March 31, 2022), increasing 73% year over year (YoY), per its earnings release. GMV growth decelerated from the same period last year (+83% YoY).
More on this: During the company’s earnings call, executives discussed three factors that helped fuel growth.
What’s next? Affirm is still focused on achieving profitability, which it inched closer to in Q3. To that end, it outlined two solutions that can help drive user and spending growth.
Adaptive Checkout shows customers a side-by-side comparison of BNPL options—biweekly or monthly payments—for each transaction at checkout. This gives customers more clarity and the flexibility to choose the option that best fits their needs, increasing the chances of spending. Affirm added Adaptive Checkout to its Google Chrome extension and recently integrated the solution into Fiserv’s Carat. Affirm’s expanded partnership with Shopify will also involve integrating the product.
Affirm's super app—which ties together its shopping, payments, and financial services offerings—launched in January. Although the app is still in the early stages, it can be a key growth tool by routing shopping traffic to Affirm’s platform. That would also increase customer engagement with Affirm’s other tools—like a forthcoming crypto trading feature—and boost monetization per user.
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