Affirm CEO on consumer behavior: 'shopping is back on and people are buying'

American consumer spending remains resilient despite the pressure of high inflation and elevated prices. Max Levchin, CEO of Affirm, reports that demand is well-distributed across categories like electronics and apparel, with Affirm’s growth reaching 36%—four times the rate of general e-commerce. While lower credit tranches showed some softness two years ago, current data indicates stability, supported by a nearly fully employed economy. Consumers are increasingly shifting away from traditional credit cards, which Levchin characterizes as "buy now, pay forever" due to compounding interest and revolving debt. Instead, shoppers are prioritizing financial predictability and fixed monthly budgets to manage their expenses. This shift toward transparent, non-revolving payment structures provides a sense of certainty that helps buyers control their finances during major retail events like Prime Day without the risk of hidden fees or unpredictable minimum payments.