Buy now, pay later firm Affirm Holdings reported Friday that Americans squeezed by $4-per-gallon gas are turning to installment payment plans to manage their household budgets, sending the company’s stock up 7% as it posted strong fourth-quarter earnings and an optimistic outlook.
CEO Max Levchin told CNBC that high fuel costs are forcing families to make tough spending choices. “The U.S. consumer undoubtedly sees the higher gas prices, so can’t ignore that,” he said. “They’re also coming to us to help manage those prices across all the various inflationary points.”
Gas Prices Still 40% Above Pre-War Levels
The national average for gasoline stood at $4.09 per gallon Friday, according to AAA. While that’s down from May’s peak above $4.50, it remains sharply elevated from prices before the Iran conflict began. The sustained pressure at the pump is reshaping how American families budget for everything from groceries to back-to-school shopping.
Levchin said inflation is actually driving more consumers to Affirm’s payment splitting services. “In times of inflation, we see more demand because folks are budgeting,” he explained. “They’re more thoughtful about how they want to use the money, and we’re there to help.”
Mixed Signals on Consumer Strength
The latest economic data shows Americans caught between rising costs and steady incomes. July’s inflation rate held at 3.7% according to the personal consumption expenditures price index, the Federal Reserve’s preferred measure. PCE rose a seasonally adjusted 0.2% for the month.
But there were bright spots: Personal income climbed 0.4% in July, and spending increased 0.2%, both stronger than economists expected. The numbers suggest households are managing to keep spending despite persistent price pressures—often by turning to financing tools like Affirm’s installment plans.
For retailers and lenders, the message is clear: American consumers haven’t stopped buying, but they’re shopping differently, stretching purchases across multiple paychecks to make the math work when gas tanks and grocery carts both cost more to fill.
Key Points
- Affirm stock jumped 7% on strong earnings as more Americans use payment plans to manage inflation
- Gas prices at $4.09 per gallon remain well above pre-Iran war levels despite dropping from May’s $4.50 peak
- Personal income and spending both beat expectations in July, showing consumers are adapting rather than retreating
https://www.cnbc.com/2026/08/28/affirm-stock-earnings-levchin-gas-prices.html – August 28, 2026
