Affirm introduces agentic credit, a new consumer lending model that underwrites each purchase in real time using AI and cash flow data, replacing the traditional revolving credit system. This approach allows lenders to approve or decline transactions based on current financial context, increasing access for consumers previously invisible to credit models and preventing overextension. Unlike revolving credit, which profits from ongoing balances and fees, agentic credit offers clear, upfront costs and defined payments, giving consumers more purchasing power and transparency. This shift also changes the business model, with merchants bearing more costs due to higher sales conversion, and credit becoming embedded directly in commerce rather than a separate product. Affirm sees this as the next step in its mission to provide honest, consumer-friendly finance solutions.
