Affirm Holdings Inc partners with digital payments processor Stripe Inc to offer buy-it-now, pay-later services to Stripe users in the United States.
Through this venture, Stripe merchants will be able to use Affirm’s adaptive payment service, which allows customers to split purchases of up to $30,000 into installments, with a maximum credit limit of $17,500.
San Francisco-based Affirm has already established similar partnerships with Amazon.com Inc and Shopify.
“Stripe is just one of many new partnerships we’ve signed, although probably one of the most exciting simply because of the quality of the product and the sheer breadth of its reach,” said Max Levchin, co-founder and head of Affirm. manager, in an interview.
Sophie Sakellariadis, Head of Payments Products at Stripe, said in a press release that Stripe merchants can set up payments with Affirm in “mere minutes.”
BNPL firms like Affirm earn by charging merchants a fee to offer their customers small point-of-sale loans that are repaid in interest-free installments. Affirm claims that businesses that use their adaptive checkout service experience increased sales and cart conversions.
Earlier in May, Affirm announced that its third-quarter revenue jumped 54%, beating the company’s estimates, as it benefited from higher interest income and loan sales volumes as well as an increase in the number of users. Affirm said active merchants on its platform grew to 207,000 from 12,000 last year, while active consumers rose 137% to 12.7 million.