Affirm Extends BNPL Offering to Adyen’s Platform Customers

Pay-later network Affirm says it is expanding its partnership with payments company Adyen.

The expansion makes Affirm the first buy now, pay later (BNPL) provider to support Adyen’s payment solution for platform businesses, while also offering more payment options for Adyen merchants in Canada, according to a Wednesday (Dec. 18) news release.

“The opportunity for platforms to embed payments and financial services is incredible — a game-changing $185 billion market opportunity for SaaS platforms, according to our research with Boston Consulting Group,” said Davi Strazza, president of Adyen North America, said in the release. “Together with Affirm, we’re unlocking greater flexibility for consumers across the U.S. and Canada.”

The expanded agreement covers Adyen for Platforms customers including peer-to-peer marketplaces, on-demand services, and crowdfunding platforms. The companies say their partnership, in place for four years, has already experienced “significant growth,” with average annual volume increasing by more than seven times between 2021 and 2023.

The announcement follows last week’s news that Affirm and global investment firm Sixth Street had formed a long-term capital partnership, with Sixth Street investing up to $4 billion by purchasing Affirm loans in a three-year forward flow agreement.

This capital commitment will allow Affirm to extend up to $20 billion in loans over the next three years, the companies said last week.

“Affirm’s ability to provide flexible, scalable financing solutions is unparalleled, and we see tremendous opportunity in this partnership,” Michael Dryden, partner and head of asset based finance at Sixth Street, said in a news release.

In other BNPL news, PYMNTS earlier this week explored the popularity of this payment method among cash-strapped consumers.

In fact, the recent PYMNTS Intelligence report “How People Pay: Cash-Short Consumers Drive BNPL Usage” found that consumers facing cash flow shortages are turning to alternative credit options like BNPL at a much higher rate than other consumers.

“BNPL is bridging the gap for cash-strapped consumers. Consumers with cash flow shortages are 3.5 times more likely to use BNPL than consumers who are financially stable,” PYMNTS wrote Monday (Dec. 16).

“Meanwhile, 8.9% of consumers who frequently experience cash flow shortages used BNPL in the past 30 days, compared to just 2.5% of financially stable consumers. BNPL is more accessible than traditional credit, allowing consumers to manage their financial demands without the restrictions of conventional credit.”

The report also notes the paradox involving consumer credits: those who need it most often face the greatest obstacles in obtaining it. This limited access drives many to turn to alternative credit options like BNPL to survive cash shortages.