PayPay Founder Reinvents Consumer Lending

Customer finance start-up Affirm has announced the release of Split Pay, a service that allows online merchants to offer installment payments to their consumers at the point of sale. By using Split Pay, shoppers can make a purchase and pay across multiple months with simple, clear financing fees that are much lower than the fees charged for using traditional credit cards.

“Consumers want and need an easy-to-use alternative to credit cards when they’re shopping online, especially underserved populations like Millennials, enthusiasts, and the vast population of debit card users,” said Affirm Founder Max Levchin in a released statement. “Consumer financing has been available to the largest online and many brick and mortar merchants for years. We’re now bringing this powerful financing to all online merchants, large and small.”

Affirm allows eTailers the opion of offering installment payments without any incumbent risks, since they pay their merchants in full at the time of settlement, thereby taking on the risk of stretched monthly installments. Split Pay is consumer-friendly insofar as what a user will pay and when is highly transparent, consumers are never hit with surprises or large fees as sometimes occurs with revolving credit.

Chris Luhur, director of marketing at the online marketplace for secondhand fashion Twice, said working with Affirm is a no-brainer.

“We strive to provide a stellar secondhand shopping experience online, and are always looking for new ways to give our customers products and services that fit their lifestyle,” said Luhur. “With payment options like Split Pay, customers can now shop our newly stocked, one-of-a-kind inventory as it becomes available, then pay for it at a more convenient time. Plus, Affirm guarantees every payment, so it’s risk free – a win-win scenario for both Twice and our customers.”

Affirm was started in 2012 by Levchin, co-founder of the digital payments giant PayPal.  Affirm hopes to bring satisfaction to the nearly half completely disgusted consumer base found in credit.  It also hopes to build bridges to consumers currently underserved by the FICO based revolving credit market.

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