In a bold move to expand the buy now, pay later concept, Affirm, a leading player in the industry, has introduced the Affirm Card. Unlike traditional BNPL cards, the Affirm Card takes the form of a debit card, providing consumers with the option to pay upfront or request to pay over time using the Affirm app.
Key Takeaway
The introduction of the Affirm Card marks a significant stride in the buy now, pay later industry. By offering a debit card option underwritten by the company itself, Affirm provides consumers with greater flexibility and control over their payment plans compared to traditional credit cards.
Redefining the Buy Now, Pay Later Experience
With the Affirm Card, customers can easily request a payment plan for eligible purchases before checking out or link their bank account to pay with the card through the app. What sets Affirm apart from competitors like Klarna and Apple Pay is that each transaction made with the Affirm Card is underwritten by the company itself, ensuring a seamless and secure payment experience.
Formerly known as Debit+, the Affirm Card has already gained significant traction, with over 500,000 active consumers as of October. Additionally, users of the Affirm Card have been found to have three times more transactions per active user compared to Affirm overall, demonstrating the appeal and effectiveness of this innovative payment solution.
Setting New Standards in the Industry
A conversation with Vishal Kapoor, Affirm’s Head of Product, sheds light on the motivation behind the Affirm Card and how it distinguishes itself from its competitors. Kapoor explains that the card was developed in response to customer demand for an expanded range of merchant partnerships and the opportunity to use Affirm beyond online purchases.
A key differentiator for Affirm is its commitment to underwriting every transaction, ensuring the financial security of its customers. Unlike credit cards, the Affirm Card offers real-time underwriting and additional features that empower users to pay now, pay as they go, or plan purchases in advance.
Furthermore, Affirm is witnessing diverse usage patterns among its consumers. While the overall spending on travel and ticketing is commendable, the Affirm Card is gaining traction in offline settings as well. Approximately 30% of cart transactions with the Affirm Card are happening in physical stores, demonstrating a strong affinity for this payment method.
Fueling Ongoing Innovation
Affirm’s commitment to innovation extends beyond consumer features. The company aims to optimize its merchant network, ensuring seamless integration with AWS solutions for point-of-sale transactions and other modalities. Additionally, Affirm provides merchants with valuable analytics to enhance their businesses, enabling them to make data-driven decisions and improve conversion rates.
The introduction of the Affirm Card sets a new standard in the buy now, pay later landscape. By combining the convenience of a debit card with the benefits of Affirm’s underwriting and flexibility, this innovative offering is redefining how consumers approach their payment options. As Affirm continues to innovate and expand its network, it is poised to drive further growth and revolutionize the way we pay.
