Compare both
Klarna - capital-light
Affirm - balance-sheet
both engines funded at the same ~$1B quarterly revenue
How BNPL funding choice splits the take rate, margin, and share multiple
Merchant GMV splits into two funding conduits. Klarna sells its loans to investor buyers, keeps a thin fee, sheds credit risk, and trades near 2.4x sales. Affirm funds origination on its balance sheet via deposits and ABS, consolidates interest income, carries credit and funding-cost risk, and trades near 6.3x sales.
Merchant BNPL originations
GMV - one stream, two funding paths
loans sold to investors
Investor buyers
risk rides out
Routes loans
out to investors
Fee on GMV
~2.85% take rate
Credit risk shed
off the books
Deposits + AFC
fund balance sheet
ABS pools
securitized funding
Interest income
~9% take - GAAP
Risk absorbed
credit risk
+ funding cost
1 - two funding paths
2 - revenue capture
3 - risk carried
4 - market pricing
Klarna
cautious
~2.4x
trailing sales
Affirm
buy
~6.3x
trailing sales
same ~$1B quarterly revenue run rate on both engines
market prices margin + funding risk into each share multiple