078: Comparing Affirm and Klarna Securitization in 2025

Affirm and Klarna are two leading players in the Buy Now, Pay Later (BNPL) space, both leveraging securitization and forward-flow agreements to fund their lending activities. Securitization involves packaging BNPL loans into asset-backed securities (ABS) or selling receivables to investors, allowing these companies to recycle capital, manage risk, and scale operations.

This comparison draws on their 2025 activities, highlighting similarities in funding needs amid expansion and differences in delinquency trends and revenue models.