BNPL: Affirm and Klarna cope with rising interest rates

With sales of US$497 million in the quarter to September 2023 (up by 37% year-on-year), US BNPL specialist Affirm reported revenue of US$50 million, exceeding analysts’ consensus, reported the Wall Street Journal.

Affirm, like other BNPL companies, has been hit hard by rising interest rates, but it has found a way around it. The company, which finances fractional payments business with investors, is enticing investment from pension funds and asset managers, attracted by high yields. “Credit...