Shoppers can now secure credit in just seconds before they get to the register and then pay off their purchase in fixed monthly installments. Affirm also launched the Affirm Virtual Card, allowing customers to add a newly issued Affirm virtual card to Apple Pay.
The announcement comes at a time when consumers are becoming increasingly wary of accumulating credit card debt and are often skeptical of traditional store-branded or private label credit cards that offer “too-good-to-be-true” financing options such as introductory 0% APR teaser rates. According to a survey conducted by Affirm, this can impact a retailer’s brand even if the financing product is offered by a third party. Fifty-five percent of respondents said they would think less favorably of a brand that offers a financial product that can be harmful to consumers. Affirm’s platform makes it possible for shoppers to pay for purchases over multiple-month terms with simple interest loans that don’t charge compounding interest or late fees. And, unlike most credit lenders that base loan decisions on a consumer’s credit score and income alone,