how would you measure the success of affirm's "buy now, pay later" feature?

Introduction

Measuring the success of Affirm's "buy now, pay later" (BNPL) feature requires a comprehensive approach that considers multiple stakeholders and metrics. To effectively evaluate this product's performance, I'll follow a structured framework covering core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

Affirm's BNPL feature allows consumers to split the cost of purchases into fixed monthly payments, typically without interest. Key stakeholders include:

1. Consumers: Seeking flexible payment options and improved purchasing power
2. Merchants: Looking to increase sales and average order value
3. Affirm: Aiming to generate revenue through merchant fees and interest (when applicable)
4. Investors: Expecting growth and profitability

User flow:

1. Shopper selects items and chooses Affirm at checkout
2. Affirm performs a soft credit check and offers payment plans
3. User selects a plan and completes the purchase
4. Affirm pays the merchant upfront and collects payments from the user

This feature aligns with Affirm's mission to deliver honest financial products that improve lives. It competes with traditional credit cards and other BNPL providers like Klarna and Afterpay.

Product Lifecycle Stage: Growth - BNPL is gaining popularity but still has significant room for expansion and market penetration.