Affirm Live When Checking Out Online or In-App with Apple Pay

Rhea-AI Summary

Affirm (NASDAQ: AFRM) has announced that its flexible pay-over-time options are now available to Apple Pay users in the U.S. with iOS 18 and iPadOS 18 or later. Users can split eligible purchases into biweekly or monthly payments for as low as 0% APR when checking out online or in-app. The integration combines Apple Pay's ease, convenience, and security with Affirm's flexibility, transparency, and no late or hidden fees.

To use Affirm with Apple Pay, users select 'Other Cards & Pay Later Options' at checkout, undergo a quick eligibility check, and choose from customized payment plans. Affirm Card™ holders will see the option to select Affirm directly. Every transaction is underwritten individually, maintaining Affirm's commitment to responsible lending. The integration preserves Apple Pay's privacy and security features, with Apple not retaining any user-linked transaction information.

Positive

• Integration with Apple Pay expands Affirm's user base and potential transaction volume
• Offering 0% APR options may attract more customers and increase sales for merchants
• No impact on credit score for eligibility checks may encourage more users to try the service
• Individual transaction underwriting demonstrates commitment to responsible lending practices

Negative

• to users with iOS 18 and iPadOS 18 or later, potentially excluding a portion of Apple device users

Insights

Financial Analyst

Affirm's integration with Apple Pay is a significant strategic move that could potentially expand its user base and transaction volume substantially. This partnership taps into Apple's vast ecosystem, giving Affirm access to millions of Apple Pay users. The 0% APR option is particularly attractive and could drive adoption, potentially leading to increased revenue for Affirm.

However, investors should note that while this may boost transaction volume, it might also increase credit risk exposure. The impact on Affirm's financials will depend on user adoption rates and the performance of these loans. It's important to monitor future earnings reports for insights into how this integration affects Affirm's key metrics such as Gross Merchandise Volume (GMV) and revenue growth.

Tech Expert

The integration of Affirm into Apple Pay represents a significant technological advancement in the fintech space. By leveraging Apple's secure ecosystem and Affirm's lending technology, this partnership creates a seamless user experience for buy-now-pay-later (BNPL) services. The requirement of iOS 18 and iPadOS 18 or later ensures that the feature benefits from the latest security protocols.

From a tech perspective, this move could accelerate the adoption of BNPL services among Apple users, potentially reshaping consumer behavior in digital payments. However, the success of this integration will largely depend on the user interface design and the speed of the eligibility check process, which are critical factors in ensuring widespread adoption and user satisfaction.

Market Research Analyst

This partnership positions Affirm strategically in the competitive BNPL market. By integrating with Apple Pay, Affirm gains a significant competitive advantage over other BNPL providers, potentially increasing its market share. The move aligns with the growing consumer preference for flexible payment options, especially among younger demographics.

However, the BNPL sector faces increasing scrutiny from regulators concerned about consumer debt levels. Affirm's emphasis on responsible lending and transparency could help mitigate some of these concerns. Market reception will be key - watch for changes in Affirm's user acquisition costs and customer lifetime value in upcoming quarters to gauge the success of this integration. The partnership could also influence Apple's position in the fintech space, potentially leading to further collaborations or competing offerings from other tech giants.

Affirm’s flexible pay-over-time options now available to Apple Pay users with iOS 18 and iPadOS 18 or later

SAN FRANCISCO--(BUSINESS WIRE)-- Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, announced that Affirm is now available to eligible users checking out online and in-app with Apple Pay on iPhone and iPad. Starting today, Apple Pay users in the U.S. can request to pay over time with Affirm, splitting eligible purchases into biweekly or monthly payments for as low as 0% APR.

(Graphic: Business Wire)

“We are thrilled to bring the power of Affirm to Apple Pay users in the U.S. and the retailers where they shop,” said Vishal Kapoor, Affirm’s Senior Vice President of Product. “This integration combines the ease, convenience and security of Apple Pay alongside the features users love in Affirm – flexibility, transparency and no late or hidden fees.”

“We are excited to provide users with even more flexibility and choice when making a purchase using Apple Pay with the introduction of Affirm loans at checkout with Apple Pay,” said Jennifer Bailey, Apple’s Vice President of Apple Pay and Apple Wallet. “This gives users access to Affirm's pay over time options right at the point of purchase, and leverages the easy, secure and private experience that our users already enjoy with Apple Pay.”

To begin, users with iOS 18 and iPadOS 18 or later can select “Other Cards & Pay Later Options” when checking out with Apple Pay on their iPhone or iPad. After choosing Affirm, they will go through a quick eligibility check that will not impact their credit score.

Approved users will see customized payment plans and can choose the one that works best for them. Once they agree to the terms, they can double-click the side button and authenticate with Face ID or Touch ID to confirm their purchase. Affirm users who already have an Affirm Card™ will also see the option to select Affirm on Apple Pay at checkout. In keeping with Affirm’s long-standing commitment to lend to consumers responsibly, every transaction will be underwritten individually, and consumers will never owe a penny in late or surprise fees.

In addition to the flexibility and transparency of Affirm, users can enjoy all the privacy and security features they love about Apple Pay. As with all Apple Pay purchases, when a user pays with Affirm, Apple does not retain any transaction information linked to the user.

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 show consumers exactly what they will pay up front and never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.

Payment options through Affirm are subject to eligibility, and are provided by these lending partners: affirm.com/lenders. CA residents: Loans by Affirm Loan Services, LLC are made or arranged pursuant to California Finance Law license 60DBO-111681. The Affirm Card™ is a Visa® debit card issued by Evolve Bank & Trust, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

AFRM-F

View source version on businesswire.com: https://www.businesswire.com/news/home/20240916393218/en/

Press:

Affirm

Andrea Hackett

press@affirm.com

Source: Affirm

FAQ

What new feature has Affirm (AFRM) announced for Apple Pay users?

Affirm has announced that its flexible pay-over-time options are now available to Apple Pay users in the U.S. with iOS 18 and iPadOS 18 or later, allowing them to split eligible purchases into biweekly or monthly payments.

What are the APR rates for Affirm (AFRM) payments through Apple Pay?

Affirm offers payment plans for as low as 0% APR for eligible purchases made through Apple Pay.

How do Apple Pay users access Affirm (AFRM) payment options at checkout?

Users can select 'Other Cards & Pay Later Options' when checking out with Apple Pay, then choose Affirm and go through a quick eligibility check to see customized payment plans.

Does using Affirm (AFRM) with Apple Pay affect a user's credit score?

No, the quick eligibility check performed when selecting Affirm as a payment option with Apple Pay does not impact the user's credit score.