PayPal co-founder Max Levchin has launched a new mCommerce firm, Affirm, which offers a quick and simple online check out process. “Affirm argues that the online checkout experience has not improved for shoppers in more than a decade, meaning merchants are left with countless abandoned carts,” according to Finextra. Affirm will use Facebook to authenticate customers at the checkout, Levchin told AllThingsD, before guaranteeing the merchant payment, for which it gets a fee.
Stripe — in which Levchin is an investor, too — will be processing credit card payments on the back end, AllThingsD.com reported.
Finextra added: “Acting as a digital charge card, Affirm then gives the customers 30 days to settle the bill, although it does not charge them for this.”
“You will essentially be putting a purchase on a digital tab, and we are going to make it work for us by looking at all available data to determine if you are someone who will pay it back,” says Levchin.
Affirm’s beta launch partner is 1-800-Flowers.