Affirm and Adyen Bring Longstanding Partnership to UK

Rhea-AI Summary

Affirm Holdings (NASDAQ: AFRM) and Adyen have expanded their partnership to the United Kingdom, enabling Adyen's UK merchants to offer Affirm's flexible payment solutions at checkout. The expansion follows significant growth in their partnership, with average annual volume increasing more than seven times from 2021 to 2023.

The collaboration offers UK consumers access to both interest-free and interest-bearing installment options, with no hidden or late fees. This expansion builds upon their initial partnership launched in November 2020 in the US, which included both online and in-store payment solutions through Adyen's terminals.

The announcement follows Affirm's recent UK launch in November 2024 and their December 2024 expansion to Adyen for Platforms customers in the US and Canada. Affirm UK is authorized and regulated by the Financial Conduct Authority.

Positive

• Partnership expansion to UK market increases Affirm's global reach
• 7x growth in average annual volume from 2021 to 2023
• Recent expansion to Canada and UK shows strong international growth momentum

Negative

• None.

Insights

Financial Analyst

Affirm's expansion of its Adyen partnership into the UK represents a strategic growth milestone for the BNPL provider. This move builds on their already successful collaboration, which has demonstrated remarkable momentum with 700% growth in annual transaction volume between 2021-2023.

The UK expansion is particularly significant for three key reasons:

• Market entry acceleration: Leveraging Adyen's established merchant network provides Affirm immediate scale in the UK, bypassing lengthy direct merchant acquisition efforts
• Geographic diversification: Reduces dependence on the US market, adding revenue streams from Europe's second-largest e-commerce market
• Competitive positioning: Strengthens Affirm's standing against entrenched BNPL competitors like Klarna in the UK market

This development follows Affirm's initial UK market entry in November 2024 and their Canadian expansion with Adyen in December 2024, signaling an accelerated international growth strategy. The partnership's structure allows UK merchants to seamlessly integrate Affirm's payment options without significant technical investment.

While the expansion represents positive momentum, investors should note that new market penetration typically involves a gradual ramp-up period. The UK BNPL market also presents a different regulatory environment with stronger consumer protections than the US market, potentially affecting operational dynamics.

The strategic value lies in Affirm's ability to leverage Adyen's established relationships to efficiently expand its geographic footprint, diversify revenue streams, and build international presence - all critical factors for long-term growth in the increasingly competitive BNPL space.

Adyen customers in the UK can now seamlessly offer Affirm’s flexible and transparent payment options to consumers

LONDON--(BUSINESS WIRE)-- Adyen, the global financial technology platform of choice for leading businesses, today announced that it has expanded its partnership with Affirm Holdings, Inc. (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, to the U.K.

Adyen’s U.K. merchants looking to provide their customers access to flexible, pay-over-time plans can now seamlessly integrate and offer Affirm at checkout. Affirm provides consumers with a wider range of interest-free and interest-bearing installment options. Approved customers can select the customized payment plan that best suits their needs, and they will never incur any hidden or late fees.

“Adyen customers all over the globe are demanding best-in-class payment experiences to boost business and drive customer engagement, which is why we are expanding our partnership with Affirm into the U.K.,” said Nicole Olbe, Adyen's U.K. Managing Director. “We’ve seen how Affirm’s consumer-first payment options accelerate growth for our U.S. and Canadian merchants and help them meet customers’ individual needs at checkout. We’re excited to unlock greater opportunities for U.K. merchants, and greater flexibility for consumers, together with Affirm.”

"Businesses across many sectors in the U.K. rely on Adyen to drive growth; now they can benefit by offering Affirm’s more flexible, transparent, and long-term pay-over-time options to their customers," said Ruth Spratt, V.P. and U.K. Country Manager at Affirm. "By deepening our partnership with Adyen, we look forward to helping more merchants to grow their business, and more consumers pay over time on a schedule that works best for them, and always without any late or hidden fees."

Launched in November 2020, the partnership between Affirm and Adyen began by making Affirm available to eligible Adyen merchants in the U.S. through a merchant’s website or app and in-store through Adyen’s physical payment terminals. In that time, the partnership has experienced significant growth, including an increase in average annual volume by more than seven times from 2021 to 2023.

Today’s news follows another recent expansion of Affirm and Adyen’s collaborative efforts. In December 2024, the two made Affirm’s pay-over-time solutions available to Adyen for Platforms customers in the U.S. and Canada, as well as opened access for Adyen merchants in Canada to a wider range of Affirm’s offerings. It also follows Affirm’s November 2024 launch in the U.K. Affirm U.K. Limited (“Affirm”) is authorised and regulated by the Financial Conduct Authority.

Adyen merchants in the U.K. can go here to learn more about how Affirm can support their business.

About Adyen

Adyen (AMS: ADYEN) is the financial technology platform of choice for leading companies. By providing end-to-end payments capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with the likes of Meta, Uber, H&M, and eBay. The cooperation with Affirm as described in this update underlines Adyen’s continuous expansion of supported payment methods over the years.

About Affirm

Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network – one based on trust, transparency and putting people first – we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.

Affirm is a form of credit. Credit subject to credit check. Terms apply. U.K. residents only, 18 and over with a bank account or a debit card. Credit is subject to a minimum spend, which may vary from time to time. Missed payments could affect your financial status.

22% Representative APR.

Affirm UK Limited provides consumer credit products and is authorised and regulated by the Financial Conduct Authority (“FCA”) for carrying out regulated consumer credit activities (firm reference number 756087). Company number 10199101, with its registered Office is at C/O TMF Group, 1 Angel Court, 13th Floor, London, EC2R 7HJ. Affirm is the trading name of Affirm UK Limited.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20250319861908/en/

Media Contacts

Affirm: affirm@headlandconsultancy.com

Adyen: adyen@brands2life.com

Source: Affirm

FAQ

What growth has the Affirm-Adyen partnership achieved since 2021?

The partnership has seen average annual volume increase by more than seven times from 2021 to 2023.

When did Affirm (AFRM) launch its services in the UK market?

Affirm launched in the UK market in November 2024.

What payment options does Affirm offer through Adyen in the UK?

Affirm offers both interest-free and interest-bearing installment payment options, with no hidden or late fees.

When did the original Affirm-Adyen partnership begin?

The partnership initially launched in November 2020 in the United States.