With the holidays quickly approaching, keep an eye on buy now, pay later stocks. Financial
pressure helps explain the appeal. U.S. household debt totaled approximately $18.8 trillion in
the second quarter of 2026. Credit-card balances increased by $21 billion during the quarter to
roughly $1.26 trillion, according to the Federal Reserve Bank of New York. Those remain the
latest available quarterly figures, with the third-quarter report scheduled for November 10.

Meanwhile, the personal saving rate stood at 3.8% in September, according to the Bureau of
Economic Analysis. Consumer spending increased 0.5% that month, outpacing the 0.2%
increase in disposable income. That leaves households with less room to absorb additional
expenses. 

Against that backdrop, spreading purchases across smaller payments can look attractive.
However, financial stress cuts both ways. It can increase demand for installment loans while
making those loans harder to repay. For investors interested in the trend, the Affirm stock
(NASDSAQ: AFRM) offers direct exposure.

Affirm Remains a Direct Way to Invest in BNPL

Affirm Holdings has given investors fresh evidence that its business is expanding.

In its fiscal first quarter of 2027, which ended September 30, revenue increased 35% year over
year to approximately $1.26 billion. Gross merchandise volume, or GMV, the value of
transactions processed through its platform jumped 34% to $14.4 billion. Operating income
also climbed sharply, reaching approximately $187 million, compared with $64 million.

Its customer base is growing, too. Affirm ended September with approximately 28.7 million
active consumers, up 19% from a year earlier. The company attributed that growth to customer
retention, increased engagement with Affirm Card, and additional merchants and platform
partnerships. 

That matters because attracting a customer is only part of the job. Getting that customer to
return can help turn an occasional financing service into a regular payment choice.

Management now expects fiscal 2027 GMV to exceed $65.25 billion, raising the outlook from
the more-than-$64-billion forecast cited in the earlier article. For the December quarter, Affirm
projects GMV of $17.9 billion to $18.2 billion and revenue of $1.435 billion to $1.465 billion.