San Francisco-based Affirm Holdings Inc said that it is planning to launch its first payment card allowing users to pay for some purchases in installments, as the buy now, pay later (BNPL) sector booms.
Founded in 2012, Affirm has become one of the most well known buy now, pay later firms in the United States, giving consumers the option to easily spread payments for online purchases.
Affirm’s card, which it expects to be available later this year, will allow shoppers to split the cost of some in-store purchases over a period of time, but they can still choose to pay up front as with a normal debit card.
The card will offer interest-free and simple interest-bearing loans, said CEO Max Levchin, adding that more than a third of U.S. consumers have used a BNPL service with debit transactions accounting for 30% of all payments.
“Yet, there is no card that currently allows consumers to make the choice between paying upfront or over time. We thought it would be very powerful to combine the two,” he said.
Looking for information about how COVID-19 has impacted the payments industry?
TSG has released a variety of COVID-19 content to highlight the impact to the payments industry. Click here for a collection of resources from articles to infographics containing shareable insights.