The deal is significant for Affirm because Stripe has “millions” of customers. It processes hundreds of billions of dollars each year for “every size of business — from startups to Fortune 500s.” And this gives Affirm an opportunity to generate more revenue as it makes money in part on interest fees. For its part, Stripe is able to offer prospective, and current, customers more payment flexibility.
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Affirm teams up with Stripe as the BNPL wars intensify
“We’ll communicate it to them obviously, as an interest rate as we’re legally required to, but also in dollars and cents,” he said. “A lot of times people get surprised when I tell them that a $1,000 purchase at 15% for a year actually translates to $83 because of the amortization schedules. A calculator on our website lets you play with all of those numbers.”
