The capability will result from a new multiyear partnership between QuickBooks owner Intuit and Affirm, in which Affirm will become the exclusive pay-over-time solution built into QuickBooks Payments, the companies said in a Monday (Feb. 2) press release.
Affirm will be offered as a payment method to QuickBooks Online customers in the U.S. who use QuickBooks Payments to invoice customers, according to the release. The integration is expected to be launched within months, per the release.
“By partnering with Affirm to bring native, pay-over-time functionality to QuickBooks, we are giving businesses a powerful new way to increase conversion and improve cash flow, while offering their own customers flexibility,” David Hahn, executive vice president, general manager, Service Group at Intuit, said in the release.
The QuickBooks financial management system manages over $2 trillion in invoices each year, according to the release.
The addition of Affirm will strengthen the platform’s end-to-end financial management capabilities, enabling businesses to get paid up front while offering their customers the option of paying over time, the release said.
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Affirm handles the application, underwriting and approval of financing for each transaction; assumes the repayment risk; and does not charge any late or hidden fees, per the release.
“Millions of SMBs rely on QuickBooks to simplify operations, keep their cash flow on track, and grow their business,” Pat Suh, senior vice president of revenue at Affirm, said in the release. “Integrating Affirm directly into QuickBooks Payments will give these businesses another lever for growth, offering customers a transparent, responsible way to pay over time while the business continues to get paid upfront.”
The PYMNTS Intelligence report “Is BNPL the Next Driver for B2B Growth?” found that B2B BNPL can help businesses buy supplies that they would otherwise have difficulty purchasing up front. At the same time, BNPL ensures that suppliers don’t have to wait for the proverbial check in the mail.
Another PYMNTS Intelligence report, “Pay Later Revolution: Redefining the Credit Economy,” found that in the consumer space, pay later options are redefining how U.S. consumers spend and borrow. Traditional banks, nonbank lenders and FinTech startups are competing and collaborating to offer flexible financing solutions for a widening array of goods and services.
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