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Affirm partners with Stripe to expand offering of buy now, pay later services -Breaking


© Reuters.

By Hannah Lang

(Reuters) – Affirm Holdings Inc has partnered with Stripe Inc, a digital payment processor that offers buy-now and pay-later services for Stripe customers in the United States.

Through the venture, Stripe merchants will be able to use Affirm’s adaptive checkout service, which allows customers to split purchases of up to $30,000 into installments, with a maximum credit limit of $17,500.

Affirm, a San Francisco company with headquarters in San Francisco, has used similar partnerships to benefit from Inc. (NASDAQ:), and Shopify (NYSE.:).

In an interview, Max Levchin (Affirm’s co-founder, chief executive officer) stated that Stripe was just one of many new partnerships.

According to Stripe’s payments product leader Sophie Sakellariadis in a press statement, Stripe merchants are able to set up Affirm payments within minutes.

Affirm is a BNPL company that charges merchants a small fee in order to provide point-of-sale loans for their customers. These are paid back with interest-free monthly installments. According to Affirm, adaptive checkout services result in increased cart conversions and sales for businesses who use them.

Affirm announced that it saw its third quarter revenue rise 54%. This was in spite of the company’s expectations. It benefited from increased interest income, loan sales volumes, and an increase in users. Affirm reported that active merchants increased to 207,000, from 12,000 in the previous year. Active consumers increased by 137% to 12.7million.