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FinTech profile: Affirm – reinventing credit score and loans | FinTech

Affirm is an progressive fintech that provides clear loans and credit score with no late charges or hidden prices

Affirm exists to assist folks benefit from the life they wish to. Whether or not that’s taking journeys, shopping for luxurious gadgets or just sustaining a wholesome lifestyle. 

Maybe unsurprisingly, that isn’t all the time easy. Saving for the long run, or guaranteeing that long run monetary targets are met usually signifies that different purchases or outgoings are put to at least one facet, says Affirm. 

Equally, bank cards, with their rates of interest and late charges are usually not essentially the reply. 

With that in thoughts, Affirm units out to supply its customers a greater method to purchase. The enterprise was based by PayPal co-founder Max Levchin with this premise in thoughts. 

Levchin, who can be the corporate’s CEO, says “We’re here to improve lives. If that means more work for us, or that we make less money, we will always take the more difficult path in favour of treating people better.”

Affirm: the way it works

Affirm presents a brand new method of lending. The corporate’s know-how permits clients to pick out fee and lending choices whereas buying and at point-of-sale to allow them to pay over time at their favorite manufacturers. 

Key advantages of utilizing Affirm embrace no late charges, service charges or prepayment charges and collection of particular fee schedules to swimsuit particular person wants. 

It’s easy too. Whereas buying at on-line retailers, clients choose Affirm at checkout, present private info and might make a real-time determination on their fee schedule. 

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Management of those funds is made by means of the corporate’s cellular app, or on-line by way of Affirm’s web site. 


Extra not too long ago, the corporate has extolled the advantages of its lending model, significantly for these going through problem on account of the COVID-19 international pandemic. 

For retailers, says Affirm, providing versatile fee choices can drive enterprise. The corporate explains that its retail companions see as much as 85% increased common order values once they provide Affirm on their sisters. 

For instance, its residence class noticed near 20% development when in comparison with pre-social distancing figures, whereas on-line checkouts from millennials and Gen Z clients elevated by 9% as extra customers from this demographic select month-to-month funds for monetary safety. 

Funding and development

In 2019 Affirm raised $300mn in a Sequence F funding spherical, which was led by Thrive Capital and included actor Ashton Kutcher and Sound Ventures as new traders. 

This noticed the corporate’s complete financing elevate to round $800mn (on the time of the Sequence F spherical). 

On account of the spherical, the enterprise was valued at $2.9bn; it said that the funding could be used for hiring new employees and for the continuing enlargement of the enterprise. 

Discover out extra about Affirm right here.

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Oliver Smith


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