1. Affirm Holdings demonstrates potential with strong revenue growth, but faces risks from high delinquency rates and regulatory changes affecting the BNPL market. 2. AFRM's business model relies on interest income and merchant fees, with lower consumer costs and delinquency rates than most traditional credit cards. 3. Competitive pressures and economic scale advantages may lead to a 'winner-take-all' market in BNPL, with Affirm and Klarna leading the charge without a clear leader.
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