Affirm inks deal with J.P. Morgan Payments to deliver more flexible, transparent payments to merchants

Rhea-AI Summary

Affirm (NASDAQ: AFRM) has expanded its partnership with J.P. Morgan Payments, integrating its pay-over-time solutions into J.P. Morgan's Commerce Platform for U.S. merchants. The collaboration comes amid strong growth for Affirm, which reported:

• 23% YoY growth in active consumers to 21 million
• 35% YoY increase in GMV to over $10B in Q4 2024

Through this integration, merchants can offer customers flexible payment plans ranging from $35 to $30,000, with terms from 30 days to 60 months. Affirm's impact on merchant performance includes:

• 70% higher average cart sizes
• 30% fewer abandoned carts compared to other providers

The partnership also includes Affirm joining the J.P. Morgan Payments Partner Network, expanding its reach to J.P. Morgan's extensive payment network that processes nearly $10 trillion in daily payments across 160+ countries.

Positive

• Partnership with major financial institution J.P. Morgan expands merchant reach
• 23% YoY growth in active consumers to 21 million
• 35% YoY increase in GMV to $10B in Q4 2024
• 70% higher average cart sizes for merchants using Affirm
• 30% reduction in cart abandonment rates

Negative

• None.

Insights

Fintech Payments Analyst

The partnership between Affirm and J.P. Morgan Payments represents a significant strategic expansion for Affirm that should meaningfully accelerate its merchant acquisition trajectory. This deal grants Affirm access to J.P. Morgan's extensive merchant network using their Commerce Platform, effectively creating a powerful distribution channel that bypasses the resource-intensive direct sales approach.

The timing is particularly advantageous given Affirm's current growth momentum – 23% YoY increase in active consumers to 21 million and 35% YoY GMV growth to over $10 billion last quarter. J.P. Morgan processes roughly $10 trillion in payments daily across 160+ countries, with its Merchant Services hitting $2 trillion in processing volumes for 2024.

The integration addresses a critical pain point for Affirm – scaling merchant acquisition efficiently. By leveraging J.P. Morgan's established relationships, Affirm can deploy its product across a much broader merchant base without corresponding increases in CAC. For merchants, the value proposition is compelling with reported 70% higher average cart sizes and 30% fewer abandoned carts.

This development strengthens Affirm's competitive positioning against both traditional credit providers and BNPL competitors by embedding its services into one of the world's largest payment infrastructures. The partnership also provides validation from a tier-one financial institution, potentially easing merchant adoption concerns around the BNPL model.

Retail Banking Strategist

This partnership signals an important shift in the mainstreaming of alternative payment methods within traditional banking infrastructure. J.P. Morgan's integration of Affirm into its Commerce Platform represents a strategic acknowledgment that flexible payment options are becoming essential rather than optional in the modern retail ecosystem.

For J.P. Morgan, this move addresses a competitive necessity. By incorporating Affirm's technology, they're meeting merchant demand for diverse payment solutions without building proprietary BNPL technology – a pragmatic choice given Affirm's established underwriting algorithms and consumer traction.

The integration scope is comprehensive, covering transactions from $35 to $30,000 with terms from 30 days to 60 months. This versatility makes the partnership relevant across multiple merchant categories from everyday retail to higher-ticket durable goods.

Beyond the immediate commercial benefits, this arrangement represents a broader convergence between fintech disruptors and established financial institutions. J.P. Morgan gains innovative payment functionality while Affirm receives institutional validation and distribution scale. For Affirm, inclusion in J.P. Morgan's Partner Network should accelerate enterprise-level merchant adoption – historically a lengthy and complex sales process.

This partnership demonstrates how embedded finance continues to reshape retail banking, with specialized payment solutions becoming standardized offerings within traditional banking platforms. The arrangement effectively positions Affirm's product as a utility-like payment option rather than a standalone alternative financing model.

Agreement brings Affirm’s payment solutions to U.S. merchants using J.P. Morgan Payments Commerce Platform

SAN FRANCISCO--(BUSINESS WIRE)-- Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, announced today that it is deepening its multi-year agreement with J.P. Morgan Payments. The agreement will make Affirm’s solutions available to J.P. Morgan Payments’ network of merchants, enabling U.S. merchants using Commerce Platform to offer Affirm’s flexible and transparent pay-over-time plans at checkout.

This collaboration comes at a time when consumer adoption of Affirm is rapidly increasing. More consumers than ever are ‘Affirming’ the purchases they want and need, with active consumers growing 23% YoY to a record 21 million and GMV surpassing $10B (up 35% YoY) in the quarter ending December 31, 2024.

"The demand for diverse payment options, flexibility, and seamless transactions from both merchants and their customers is at an all-time high. By incorporating Affirm as a payment method into our Commerce Platform, we are empowering businesses to deliver the services they need and the experiences that customers increasingly expect as part of their retail journey," said Michael Lozanoff, Global Head of Merchant Services at J.P. Morgan Payments.

By integrating Affirm at checkout, U.S. merchants using J.P. Morgan Payments’ Commerce Platform will give their customers the option to select Affirm as a payment method when making a purchase. Upon doing so, they will go through a quick eligibility check. If approved, they will see a set of customized payment options and can choose the biweekly or monthly plan that works best for them. Because of Affirm’s proprietary technology and real-time underwriting, the company can serve a wide swath of consumers and their transactions, offering payment plans for cart sizes from $35 to $30,000 and with term lengths from 30 days to 60 months. As always, Affirm does not charge any late or hidden fees, ever.

The value Affirm delivers to consumers doubles as a revenue accelerant for businesses. Merchants who offer Affirm at checkout see 70% higher average cart sizes and nearly 30% fewer abandoned carts compared to other pay-over-time providers (source).

“We are thrilled to deepen our relationship with J.P. Morgan Payments and bring our pay-over-time solutions to this massive network of merchants and their customers,” said Wayne Pommen, Chief Revenue Officer at Affirm. “Integrations like this significantly expand the reach of Affirm, giving more businesses the tools to thrive in today’s retail landscape while delivering maximum flexibility and transparency to more consumers.”

Affirm will also join the J.P. Morgan Payments Partner Network, which brings together J.P. Morgan Payments’ extensive suite of payment solutions and its third-party relationships to help clients build, implement, expand and optimize payments strategies based on their business needs.

J.P. Morgan Payments combines treasury services, trade & working capital, card and merchant services capabilities to help clients pay customers or employees, in different currencies, around the world. It processes nearly $10 trillion payments daily, operating in over 160 countries and over 120 currencies. In 2024, Merchant Services hit $2 trillion in payments processing volumes.

For more information about how Affirm helps business grow, visit here.

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.

Rates from 0–36% APR. For example, a $800 purchase might cost $72.21/mo over 12 months at 15% APR. Payment options through Affirm are subject to an eligibility check, may not be available everywhere, and are provided by these lending partners: affirm.com/lenders. Options depend on your purchase amount, and a down payment may be required. CA residents: Loans by Affirm Loan Services, LLC are made or arranged pursuant to a California Financing Law license. For licenses and disclosures, see affirm.com/licenses.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20250325988579/en/

Press

press@affirm.com

Source: Affirm

FAQ

What are the key benefits of Affirm's partnership with J.P. Morgan Payments for merchants?

Merchants using J.P. Morgan's Commerce Platform can offer Affirm's flexible payment plans, resulting in 70% higher average cart sizes and 30% fewer abandoned carts.

How much growth did Affirm (AFRM) report in Q4 2024?

Affirm reported 23% YoY growth in active consumers to 21 million and a 35% YoY increase in GMV to over $10B.

What payment terms does Affirm offer through the J.P. Morgan partnership?

Affirm offers payment plans ranging from $35 to $30,000, with terms from 30 days to 60 months, with no late or hidden fees.

What is the scale of J.P. Morgan Payments' processing volume in 2024?

J.P. Morgan Payments processes nearly $10 trillion in daily payments across 160+ countries, with Merchant Services reaching $2 trillion in processing volumes in 2024.