Affirm Deployed AI Model to Boost Checkout Conversions

The new underwriting system allows retailers to capture more sales from consumers with limited credit histories.

Updated on Oct. 5, 2026 in Economic Indicators

Isometric editorial illustration featuring stacked metallic geometric blocks, representing the structural precision of AI underwriting technology. — Affirm implemented a new transformer-based AI model that analyzes real-time financial data, resulting in a 3.4% increase in successful checkout conversions. AI Illustration. Upload story photo >

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Affirm has rolled out a transformer-based underwriting model that uses real-time credit bureau data to approve more shoppers at checkout. The new system generated a 3.4% increase in completed purchases for the company.

Why it matters

By leveraging patterns in payment history and account balances rather than traditional FICO scores, the model improves decision-making accuracy for potential customers who were previously excluded. This adjustment helps operators widen their accessible customer base at the point of sale.

Affirm processed 53 million transactions in fiscal Q4, reflecting 41% year-over-year growth, while active consumers reached 27.8 million, up 21%. Despite higher transaction frequency, average order value declined 4%.

The players

Affirm

A San Francisco-based fintech company that provides point-of-sale financing through a real-time underwriting platform.

The details

The transformer-based model evaluates each purchase individually in real time, identifying granular patterns within existing credit data. This enables the platform to approve applicants who lack traditional credit scores by analyzing broader financial behaviors. The process allows merchants to convert more traffic into sales without relying on standard underwriting constraints.

Affirm processed 53 million transactions during fiscal Q4 2026.
Transactions per active consumer reached 7.0 over the trailing 12 months.

Market Landscape

This development follows a documented industry trend toward utilizing alternative credit data to bypass the limitations of traditional FICO scoring. It marks a significant expansion of underwriting capabilities designed to capture consumers previously underserved by standard financial models.

Operators should monitor whether integration of these AI-driven underwriting tools helps reduce cart abandonment rates in their specific retail niches. Evaluate if your current financing partners provide similar access to thin-file or non-FICO consumer segments to avoid missing potential revenue.

The takeaway

The move toward real-time, pattern-based underwriting is expanding the addressable market for merchants by lowering the barrier to purchase for credit-invisible shoppers. Business owners should track whether an increase in transaction volume offsets the potential change in average order values.