The credit card industry is facing disruption as Buy Now, Pay Later (BNPL) payment methods gain traction among U.S. consumers, especially during peak shopping days like Black Friday and Cyber Monday. Affirm, a leading player in the BNPL space, has seen significant growth, partnering with major retailers like Amazon and Apple to expand its user base. With household credit card debt reaching an all-time high of $1.16 trillion, Affirm aims to provide a transparent alternative to traditional credit cards, boasting no late fees and installment loans on a per-transaction basis. The BNPL market is projected to grow 24% annually through 2030, and Affirm's gross merchandise volume is outpacing the industry average. The leadership of CEO Max Levchin, a fintech veteran, adds to Affirm's competitive edge with effective underwriting and innovative products like the Affirm Card. While not yet profitable, Affirm's potential for substantial growth makes it a compelling investment for the future.
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