Affirm CEO: High Gas Prices Squeezing U.S. Consumer Spending
Max Levchin warns that rising fuel costs are creating headwinds for discretionary spending and BNPL volume.
Affirm CEO Max Levchin warned that surging gas prices are actively eroding the spending power of U.S. shoppers. This trend is creating a significant headwind for discretionary spending, which directly impacts the volume of "buy now, pay later" (BNPL) transactions.
Speaking during an earnings-related discussion, Levchin stated that "high gas prices are hitting U.S. shoppers." According to AAA data, the national average price for gas reached $4.09 per gallon as of Friday, August 28, 2026. This increase in a primary essential cost is weighing on the ability of consumers to allocate funds toward non-essential purchases.
The BNPL Connection
Affirm operates in the fintech sector, providing short-term financing that allows consumers to split purchases into smaller payments. Because the company's loan products are primarily driven by non-essential goods, its business model is highly sensitive to fluctuations in disposable income. When the cost of fuel rises sharply, consumers typically prioritize these mandatory expenses over the retail goods that drive Affirm's transaction volume.
Broader Economic Implications
As a bellwether for consumer health, Affirm's observations suggest that inflationary pressure on energy is placing a particular squeeze on middle- and lower-income households. This shift in spending behavior often serves as an early indicator of a broader slowdown in retail growth. For fintech lenders, this environment not only threatens transaction volumes but may also increase credit risk as households struggle to manage both rising essential costs and existing debt obligations.
Market Outlook
Industry analysts will be watching to see if this trend persists through the next quarter or if a stabilization in energy prices allows discretionary spending to recover. While the impact on BNPL volume is clear, it remains to be seen how other retail sectors will adapt to the continued pressure on the American consumer's wallet. The interplay between energy costs and retail health remains a critical metric for the broader economy as the year progresses.