AFRM
Affirm Holdings, Inc.
Is AFRM Halal?
Buy now, pay later lender — core business is consumer installment loans (riba).
What You Should Know
Affirm Holdings is one of the largest US buy now, pay later (BNPL) lenders, providing point-of-sale installment financing in partnership with merchants like Amazon, Walmart, and Shopify. While Affirm markets itself as offering 'no late fees' and a portion of its volume is genuinely 0% APR (subsidized by merchants), the company's core revenue model relies on interest charged to consumers — APRs on interest-bearing loans typically range from 10% to 36%. Interest income from consumer loans is the largest component of revenue, making the company a conventional consumer finance lender for Sharia screening purposes. Affirm also packages and sells loan portfolios through asset-backed securitizations, which are themselves interest-based instruments. The company fails the qualitative business activity screen at every major Sharia advisory board.
⚠️ Concerns
- •Core revenue is interest income on consumer installment loans (riba)
- •0% APR loans are a minority of total volume
- •Loan securitizations are interest-based instruments
- •Late-fee-free positioning does not change the underlying riba structure
- •Fails business activity screen at every major Sharia screening platform
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