Affirm, the American “buy now, pay later” (BNPL) firm, launched its services in the United Kingdom on Monday, marking the company’s first foray outside North America.
Founded in 2012, Affirm is well-regarded in the fintech space for providing flexible payment plans and has quickly gained traction with consumers seeking alternatives to traditional credit.
In its UK offering, Affirm provides both interest-free and interest-bearing monthly installment plans, with interest fixed on the original loan amount to prevent compounding.
Affirm emphasizes consumer-friendly practices, including underwriting each transaction individually and foregoing late fees entirely.
This expansion builds on Affirm’s partnerships with global giants like Amazon, Shopify, and Walmart.
The company now boasts over 50 million users and works with more than 300,000 merchants worldwide.
In the UK, Affirm has already partnered with Alternative Airlines and payments firm Fexco, with plans to onboard additional merchants in the coming months.
Affirm’s entry into the UK was a year in the making.
CEO Max Levchin shared that demand from UK merchants was a significant factor in the decision to expand there, citing the English-speaking market and strong interest as key motivators.
“It is a huge market… making it a great fit for the business,” CNBC quoted Levchin as saying, adding that expansion into non-English-speaking markets is on the horizon, though it may require more groundwork.
Levchin acknowledged the crowded BNPL market in the UK, where Affirm will compete against prominent players like Klarna, Clearpay (owned by Block), Zilch, and PayPal.
According to Levchin, Affirm’s approach sets it apart through options that allow customers to spread payments over extended periods—up to 36 months, a lengthier timeframe than many competitors offer.
Affirm’s UK launch also coincides with ongoing government discussions on potential regulation for the BNPL sector.
Proposed measures include mandating clear consumer information, ensuring affordability, and introducing protections for customers if issues arise.
Levchin expressed support for regulatory oversight, stating that Affirm’s consumer-first approach aligns well with these principles.
“Generally speaking, we welcome regulation that is thoughtful… but also knows how not to be too cumbersome on the end-customer,” he remarked, stressing the importance of easing consumer burdens.
Affirm’s UK launch follows months of dialogue with the Financial Conduct Authority (FCA), the UK’s financial regulatory body, which granted the firm authorization. Levchin credited Affirm’s “pristine reputation” for smoothing the regulatory process.
“We’ve never charged a penny of late fees… no deferred interest. We don’t do any sort of the anti-consumer stuff people struggle with,” he noted, emphasizing Affirm’s commitment to transparent and consumer-friendly practices that resonate with merchants and regulators alike.
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