Affirm Expands Offering to Cover Smaller Purchases with Simple, Transparent Payments

Interest-free, 3-month payment terms will give shoppers a new way to make smaller purchases; new product will benefit fashion and apparel brands.

SAN FRANCISCO--()--Affirm, Inc., the company founded by entrepreneur Max Levchin to provide fair and honest financial products, today announced Affirm will partner with brands and retailers to offer shoppers a simple, no-interest payment option on purchases of any size via three easy, monthly payments. Now, Affirm’s financial products are available for purchases of any size, marking an expansion for the company. Affirm will continue to offer shoppers the option to buy now and make simple, transparent payments over time for purchases up to thousands of dollars, with terms ranging from 3 to 36 months.

The expansion of Affirm’s capabilities will be especially valuable to fashion and apparel brands and retailers that want to offer a quick and convenient payment method that better aligns with shoppers’ cash flows and are more transparent than traditional credit.

Consumers want more flexible, customized payment options

Affirm already partners with over 1,200 merchants, including major fashion brands like Tamara Mellon, Rebecca Minkoff, Paul Evans and Shinola. Now, thousands more merchants across all price points will be able to partner with Affirm, giving transparent payment options to shoppers while also driving business results.

“After talking to many of our merchant partners, we determined that there’s demand from shoppers to buy with Affirm no matter what they are purchasing, especially in fashion,” said Rob Pfeifer, Chief Revenue Officer at Affirm. “Savvy consumers appreciate having the option to spread out the cost of a great pair of shoes or a new outfit over three months rather than pay up front. Affirm is giving them that control and transparency, and merchants get the same great benefits of providing Affirm at checkout.”

Affirm already has a proven track record of adding significant value for its merchant partners. Apparel brands typically see a 51 percent increase in cart size and a 96 percent increase in repeat purchases when shoppers use Affirm to pay over time instead of traditional credit or other payment methods.

“Quality wedding bands are expensive and Affirm gives our customers the option to split their payments over three months with no interest,” said Johnathan Ruggiero, CEO at Manly Bands. “Our customers love it and we're getting sales that we would have missed otherwise. It's a win-win for everyone.”

A new era of buying behavior and expectations

Millennial consumers are often seen as a bellwether for the future of retail due to the significant spending power they will possess. According to Accenture, millennials are spending an aggregate of $600 billion per year in the United States and have predicted that by 2020 their annual retail spend will grow to $1.4 trillion (or 30 percent of all retail sales). However, having lived through a global recession and with many shouldering substantial financial obligations such as student loans, millennials are often cash-strapped and skeptical of credit gimmicks and hidden fees.

This has led to an increasing demand for transparency, convenience, and flexibility among shoppers when making purchases. A recent survey conducted by Affirm found that millennial consumers crave transparency from their financial obligations and plan out spending in defined time increments – 93 percent say they plan their spending in weekly, bi-weekly or monthly time horizons.

Additionally, one-third expressed that their fear originates from the unknown—they simply don’t know how long it will take them to pay off what they owe on a credit card. Millennials are looking for simpler ways to pay for purchases without relying on traditional credit, which carries inherent uncertainty through compound interest and potential fees.

“We’re excited to see the response to this expansion, both among shoppers and merchants. Affirm is committed to providing transparent financial terms that enable people to spend responsibly at the retailers they love without the typical trade offs that come with traditional credit products,” said Pfeifer.

About Affirm

Affirm offers services that empower consumers to advance their financial well-being. Our goal is to revolutionize the banking industry to be more accountable and accessible to consumers. Today, Affirm shoppers get the flexibility to buy now and make simple monthly payments for their purchases. Unlike payment options that have compounding interest and unexpected costs, Affirm shows customers upfront exactly what they’ll owe — with no hidden fees and no surprises. Affirm also reaches a broader population of consumers through advanced technology and analytics that look beyond traditional FICO scores. These features increase customer satisfaction over other options.


Affirm, Inc.
Elizabeth Allin, 415-535-8050

Release Summary

Affirm expands offering to cover smaller purchases with simple, transparent payments.


Affirm, Inc.
Elizabeth Allin, 415-535-8050