Shubham Sawarkar
Affirm, a financial company is partnering with digital payments processor Stripe Inc. to offer “buy now, pay later” services to Stripe users in the United States.
Stripe merchants will be able to use Affirm’s adaptive checkout service, which allows customers to separate purchases of up to $30,000 into installments with a maximum credit limit of $17,500, thanks to the partnership.
San Francisco-based Affirm has previously leveraged similar partnerships with Amazon Inc and Shopify.
“Stripe is just one of many fresh partnerships that we have signed, although probably one of the more exciting ones just because of how great the product is and just how large their reach really is,” said Max Levchin, Affirm co-founder and chief executive officer, in an interview.
Stripe merchants can set up payments with Affirm in “minutes,” according to Sophie Sakellariadis, payments product lead at Stripe.
“Businesses need to move quickly to keep up with changing consumer preferences,” said Sophie Sakellariadis, Payments Product Lead at Stripe. “For ten years, Affirm has been a powerful tool for businesses to reach new customers and drive growth. Stripe users can now get started accepting payments with Affirm in mere minutes.”
“Businesses who offer Affirm at checkout have reported as much as 85% higher average order values compared to other payment methods, and our new partnership delivers a powerful growth engine to the millions of businesses and platforms that use Stripe,” said Geoff Kott, Chief Revenue Officer at Affirm. “Stripe’s infrastructure, combined with Affirm’s customizable payment options and unrivaled flexibility and transparency, provides immense value for businesses looking to reach new customers, increase sales, and drive growth.”
BNPL firms like Affirm make money by charging merchants a fee to provide their customers with small, interest-free point-of-sale loans. Businesses that use Affirm’s adaptive checkout service saw a boost in sales and cart conversions, according to the company.
Affirm announced earlier this month that its third-quarter revenue increased by 54%, above the company’s expectations, thanks to increasing interest income and loan sale volumes, as well as an increase in customers. The number of active merchants on Affirm’s platform surged by 137 percent to 207,000 from 12,000 last year, while the number of active consumers increased by 137 percent to 12.7 million.
