Affirm Holdings announced a new partnership with Pacsun, a specialty retailer focused on youth‑oriented apparel, that will allow Pacsun shoppers to use Affim’s buy‑now‑pay‑later service at checkout. The deal includes a 10% discount for purchases made with the promo code “AFFIRM” and interest‑free financing options of 0% APR over up to 24 months, valid through December 18 2025 for items in Pacsun’s Holiday Gift Guide.
The partnership comes on the heels of Affim’s fiscal Q1 2025 earnings, in which the company reported net income of $80.7 million and earnings per share of $0.23—an $0.12 or 109% beat over the consensus estimate of $0.11. Revenue for the quarter reached $933.3 million, up 5.5% from the $885 million forecast. The strong results were driven by a 12% increase in merchant volume, largely from high‑margin e‑commerce transactions, and disciplined cost management that kept operating expenses below the 4% rise in revenue.
Affim’s CEO Max Levchin highlighted the partnership as part of a broader strategy to accelerate merchant acquisition and capture higher gross merchandise volume (GMV). “Setting another highest‑ever GMV record in a quarter with relatively few shopping holidays showcases the consistency of Team Affim,” Levchin said. The Pacsun deal adds a high‑traffic, youth‑centric channel that is expected to boost Affim’s merchant network to over 360,000 active partners, up from 358,000 at the end of March 2025.
The BNPL market is projected to reach $576 billion by 2025, and Affim’s expansion into Pacsun’s customer base positions the company to capture a larger share of the growing demand for transparent, interest‑free payment options among Millennials and Gen Z shoppers. The partnership also diversifies Affim’s merchant mix, reducing concentration risk and supporting the company’s goal of scaling its platform across new verticals such as travel, education, and healthcare.
Affim’s management remains optimistic about the trajectory of its merchant network growth, citing continued momentum in consumer adoption and the ability to secure high‑profile partners. The Pacsun partnership is a tangible example of the company’s execution on its growth strategy and is expected to contribute positively to future revenue and GMV growth.
The partnership underscores Affim’s commitment to providing flexible payment solutions while reinforcing its position as a leading BNPL provider in a competitive market that includes Klarna, Afterpay, and traditional banks entering the space.
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