Online Merchants and Shoppers Embrace Affirm Financing Service

Early eTail Adopters Report Increased Conversion and Average Order Value; Meaningful Savings and Financial Flexibility for Consumers

SAN FRANCISCO--()--Affirm said today it is seeing rapid adoption of its new consumer-friendly, low-cost installment financing service by online shoppers and merchants in the first two months of commercial availability. Early data show meaningful savings for consumers compared to using revolving credit, as well as greater sales for eTailers, Affirm reported.

“We started Affirm on the belief that the current FICO-based credit rating system was not working for many consumers,” said Affirm CEO and co-founder Max Levchin, “It’s now clear that online shoppers and merchants were ready for an affordable, transparent alternative to old-school credit cards.”

Affirm’s installment payments product is proving useful to large groups of consumers such as Millennials, who primarily use debit and may not have a developed FICO score. Specifically, Affirm is excellent for buyers making larger purchases that would otherwise cause them to carry a balance with a credit card, which would cost 40% to 60% more. For example, on the purchase of a $2,000 couch, consumers with 700 or better FICO scores have saved as much as $219 in fees compared to revolving credit, and consumers with FICO scores under 700 have saved up to $464.

Online retailers that offer customers Affirm payment plans, meanwhile, are also realizing benefits. Early adopters say they are seeing significant sales conversion rates and their average order values (AOV) have jumped by as much as 35%.

Code-named Split Pay during development, Buy with Affirm was launched in July to let online merchants offer the power of installment payments to their consumers at the point of sale. Using Affirm, online shoppers can make a purchase and pay it off in a fixed number of monthly payments with simple, clear financing terms.

As a result of Buy With Affirm’s positive market reception and performance, Affirm is now rapidly scaling its merchant distribution efforts by integrating its services directly with merchants or via major ecommerce platforms, including Celery, Magento, Spree and more.

Affirm’s report on early merchant and consumer adoption comes just weeks after closing a partnership with FDIC-regulated Cross River Bank in New Jersey, which allows Affirm to finance consumer purchases in all 50 states under the bank’s federal lending charter at a maximum Annual Percentage Rate of 30%.

About Affirm

Affirm is reimagining financial services – from credit cards to deposit banking. Starting with an amazingly simple, new way to get affordable financing at the online point of sale, Affirm lets shoppers pay for purchases across multiple months with transparent, fairly-priced fees built into every payment, and boosts conversion and basket size for eTailers at less than the cost of credit cards. Created in 2012 by PayPal Co-founder Max Levchin, former Chief Data Officer of ngmoco, Jeff Kaditz, and Palantir Co-founder Nathan Gettings, Affirm is based in San Francisco. To start working with Affirm go to affirm.com.

Contacts

for Affirm
Lisa Tarter, 415-203-2462
lisa@tidalwavepr.com

Release Summary

Early eTail adopters of Affirm financing service report increased conversion and average order value; meaningful savings and financial flexibility for consumers

Contacts

for Affirm
Lisa Tarter, 415-203-2462
lisa@tidalwavepr.com