Sam Boughedda

Company: Buy Now, Pay Later Affirm Holdings Inc (NASDAQ: ) announced on Tuesday a partnership agreement with Stripe online credit card processing platform and payment processing site Stripe.

Affirm stated that it will offer its Adaptive Checkout function today to Stripe users in the US through the strategic partnership. The Adaptive Checkout system uses Affirm’s smart decision engine to ‘make a real-time underwriting decision and offer consumers optimized bi-weekly and monthly pay over time options side-by-side.’

This deal allows any Stripe-based business to integrate Stripe technology in their checkout processes. Affirm stated that customers may split purchases up to $30,000 with maximum credit limits of $17,000.

In December 2021, Buy Now, Pay Later companies were under investigation. The Consumer Financial Protection Bureau issued a number of orders to Affirm (NASDAQ:), Afterpay, Klarna (NASDAQ:), Zip (ASX:), to gather information about the benefits and risks of these fast-growing loans.

Affirm’s Chief Revenue Officer Geoff Kott said businesses who offer Affirm at checkout have reported as much as 85% higher average order values compared to other payment methods.

“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,” added Kott

Affirm, a buy now-pay later firm, earns its money by charging merchants fees rather than customers. Affirm states that customers benefit from higher sales and conversions when they use their services.

Stock in Affirm fell more than 2% Tuesday.