The company, founded by entrepreneur Max Levchin, allows shoppers to make transparent payments over time for purchases up to thousands of dollars, with terms ranging from three to 36 months.
Affirm, which already partners with over 1,200 merchants, including fashion brands like Tamara Mellon, Rebecca Minkoff, Paul Evans and Shinola, is looking to establish relationships with thousands of additional merchants across all price points.
“After talking to many of our merchant partners, we determined that there’s demand from shoppers to buy with Affirm no matter what they are purchasing, especially in fashion,” said Rob Pfeifer, chief revenue officer at Affirm. “Savvy consumers appreciate having the option to spread out the cost of a great pair of shoes or a new outfit over three months rather than pay up front. Affirm is giving them that control and transparency, and merchants get the same great benefits of providing Affirm at checkout.”
For example, apparel brands usually see a 51 percent increase in cart size and a 96 percent increase in repeat purchases when shoppers use Affirm.
“Quality wedding bands are expensive, and Affirm gives our customers the option to split their payments over three months with no interest,” said Johnathan Ruggiero, CEO at Manly Bands. “Our customers love it, and we’re getting sales that we would have missed otherwise. It’s a win-win for everyone.”
Last month, the company launched Affirm InStore, which offers Affirm’s products for brick-and-mortar stores.
“Affirm InStore is about giving merchants and consumers an easy way to get more people through the checkout flow,” Pfeifer explained.
“Working with Affirm gives merchants the ability to nudge their customers to apply for credit earlier in the buying cycle,” he added. “They will get approvals with very clear terms — and that means the consumer can adjust how they are thinking about what they are buying.”