We negotiate these loan eligibility criteria and interest rates with each merchant individually. Yes. Andrew Jeffrey -- Truist Securities -- Analyst. In the last 12 months, they have been ~1% of GMV. These measures should be considered as a supplement to and not as a substitute for GAAP financial measures. The speed and accuracy of our technology allow us to instantly elevate consumers' requests and provide them with tailored payment options within seconds. We look forward to delivering returns with offerings to more merchants and introducing their more than 8 million users to Affirm. Yes. This was the high-level sell for Affirm and others in the "buy now, pay later" (BNPL) space: consumers (especially younger generations) want more transparency, are afraid of credit cards, and don't want to take on large amounts of debt. Do you think that will be fully captured -- or that program will be fully captured in the June quarter? Please proceed with your question. As a part of that, we announced today that Libor Michalek, Affirm's President of Technology, has been appointed to our board of directors. As noted, Affirm's business model revolves around building products to facilitate online transactions between customers and merchants. The upshot is clear: BNPL's customer base is primarily young, female, and relatively low-income. 10 stocks we like better than Affirm Holdings, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Another former colleague, Keith Rabois, sits on Affirm's board. While Affirm positions itself as a credit card alternative, the chart below leads us to believe the company can take share from other payment mechanisms. Zoom CEO Eric Yuan famously recruited heavily from former employers Webex and Cisco. And so we had timed the time to complete a transaction using Shop Pay Installments powered by Affirm versus all the other competing products that in a while. Or Bank of America's? Lots and lots more to do together as well, so we worked very long and hard. There's so much growth available in every subsegment. In its S-1, Affirm insists that it is a payment platform and merchant network, not a lender. Affirm has built a product that is valuable to both merchants and consumers. Hi. And that means that every new Shopify merchant coming on to the platform will have Shop Pay Installments powered by Affirm enabled automatically. Thanks, operator. Given that Affirm approves 20% more customers for credit than comparable competitors, the risk is particularly pronounced. As it stands, BNPL providers only process sales in the tens of billions. Data from Second Measure provides another barometer. But once the merchant restocks and refunds, then you can come back and shop." Affirm's financial focus is the contribution profit extracted from its GMV. And that's really, really powerful. As early as 2015, Levchin was dreaming big. Merchants pay Affirm a much smaller cut (closer to 0%). Reflecting on these dynamics, we are raising our outlook for the balance of the fiscal year. After all, when was the last time you started your purchasing journey on Chase's website? Per Affirm's help page: [A] number of factors are taken into account: current economic conditions; eligibility criteria—which include things like your credit score, your payment history with Affirm, and how long you've had an Affirm account; and the interest rate offered by the merchant where you're applying for the loan. We're not just paying for and what else do you need. The full-year guidance and the fiscal year-to-date financials include the impact of the adoption of CECL retroactive to July 1, 2020. From Affirm's 'For Business' page: Affirm's friction-free borrowing and borrower-friendly terms reduce the barriers to purchasing expensive items, increasing AOV, and repeat purchase rates. Today, the BNPL space represents a small portion of total retail spend, is concentrated in specific categories, and mostly used online. The card network’s Q1 total gross dollar volume (GDV) grew 8% year-over-year (YoY) globally, reaching $1.71 trillion––an acceleration from the 1% growth it saw in the previous quarter. Though initially slow to take-off in the US, BNPL in general, and Affirm in particular, gained steam in recent years, bringing partners like Peloton, Casper, Expedia, and Shopify into the fold. Our next question comes from the line of Moshe Orenbuch with Credit Suisse. But beyond the fundamentals of the business, Affirm's long-term success may depend on its ability to further cement that ethos, stoke our desires, narrow the distance between impulse and purchase. On the surface, it appears to be working: This graph highlights how Affirm's net "charge-offs" (the percentage of transactions it deems uncollectible) has declined for new customer cohorts. As noted, we see the industry as being in a "land grab" phase in which BNPL providers need to secure the highest number of quality retailers so that they can offer the most comprehensive marketplace. [Operator instructions] Our first question comes from the line of Dan Perlin with RBC Capital Markets. Long-term CDs often include a provision that allows the issuer to call the CD prior to maturity at a specified price. Merchants use Affirm because it improves pricing power, repeat purchase rates, and conversion rates. If you were hoping to talk to a Affirm.com agent live right now, on the phone or via live chat, this might be disappointing. I mean, when we take even the bulk of that is the $3.5 million number, which again was recorded in Q3 so this should not be an impact in Q4. It doesn't take much imagination to see how Affirm's cancellation and returns policies during the pandemic could cause problems. They end up in one of two camps: 0% APR merchant. Perhaps unsurprisingly, Affirm boasts +100% dollar-based merchant retention rates. We're seeing strengthening momentum in our business as consumers and merchant adoption continues to grow, and we believe Affirm is uniquely positioned to capture the large and growing opportunity in front of us. On the low AOV side of things, I think, again, I believe that ultimately, brands will have one or two, maybe three providers. She has the domain expertise to navigate the regulatory environment for Affirm as it adds financial products to the platform. A co-founder and CTO of PayPal during the early days of e-commerce, Levchin built his career at the intersection of fraud, underwriting, and online consumer behavior. That's historically been a barrier to e-commerce penetration for luxury goods. So not really a data point there. My Debit Card Payment Has Been Declined Even Though I Have Enough Money to Cover the Payment Solution. It is good to buy beyond our means, to acquire the computer we cannot afford. But before we go through the numbers, I would like to start by sharing a few stories from the past quarter to help demonstrate the power of Affirm. And we always saw that as just a huge opportunity for us to step in and say, "Well, what if we know a customer well enough to allow them to shop even before they put the unwanted item in a box so that they can accelerate commerce for them to get their satisfaction that much faster and help merchants just move the inventory that much quicker?"
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