Affirm

Offer flexible payments to customers, boost sales, and get paid upfront.

by Affirm · Payment Processing

Executive Summary

Affirm is a leading Buy Now, Pay Later (BNPL) platform that empowers consumers to pay for purchases over time with transparent, flexible payment options, including interest-free installments. It serves merchants of all sizes, enabling them to increase average order value, conversion rates, and customer loyalty by removing price as a barrier. Affirm differentiates itself through its advanced AI/ML-driven underwriting for responsible lending and its commitment to no hidden fees for consumers, while paying merchants upfront and in full.

Use Cases

  • Increasing average order value and conversion rates for online and in-store merchants.
  • Providing flexible, transparent payment options for consumers for high-ticket purchases.
  • Improving customer loyalty and repeat purchases through a positive payment experience.
  • Managing merchant cash flow by receiving full payment upfront while Affirm handles consumer installments.
  • Mitigating credit and fraud risk for merchants by Affirm assuming the risk.
  • Offering flexible rent payment options through pilot programs.

Features

Visibility

  • Merchant Portal Analytics: Comprehensive dashboards displaying key performance indicators such as loan volume, average order value, and customer demographics.
  • Real-time Transaction Monitoring: Ability to view and manage charges, settlements, and refunds in real-time within the merchant portal.
  • Settlement Reporting: Access to detailed settlement reports, including daily snapshots and recurring reports via email or SFTP, for reconciliation.
  • Enhanced Analytics: Integration capabilities for enhanced analytics to track sales, repayment performance, and customer behavior.

Intelligence

  • Adaptive Checkout™: AI-powered technology that dynamically offers personalized payment options to each customer based on their profile and purchase.
  • AI/ML-driven Underwriting: Sophisticated machine learning models assess credit risk and make real-time lending decisions, enabling responsible financing.
  • Fraud Prevention: Advanced fraud detection mechanisms protect both merchants and consumers from fraudulent transactions.
  • Credit Reporting: Reports consumer payment activity to major credit bureaus (Experian, TransUnion) for eligible plans, potentially impacting credit scores.

Support

  • Dedicated Business Support: Access to resources and support for merchants, including FAQs, help articles, and direct assistance.
  • Integration Guides & Developer Resources: Comprehensive documentation and guides for seamless integration with e-commerce platforms or via direct API.
  • Marketing Toolkit: Resources and guidelines to help merchants effectively promote Affirm as a payment option to their customers.

Technical Specifications

Architecture
Cloud-native microservices on Amazon EKS
Deployment
Cloud/SaaS
Authentication
API keys for merchant integrations; device verification (SMS) for consumers. Standard enterprise authentication for merchant portal access (details not public).
API Available
Yes
MCP Server
No

Infrastructure

  • AWS

AI/ML Stack

  • Machine Learning
  • Deep Learning

Integrations

  • Shopify
  • WooCommerce
  • BigCommerce
  • Salesforce Commerce Cloud

Security & Compliance

Certifications: PCI DSS

Encryption: Industry-standard encryption for data at rest and in transit (e.g., TLS for in transit).

Pricing

Model
Merchant fees (percentage + flat fee per transaction) and interest income from consumer loans.
Starting Price
Contact sales (typically 3-6% + flat fee per transaction, negotiated based on business size, risk profile, and program option).
Target Customer
SMB to Enterprise (focus on mid to high-ticket items).
Contract Type
Custom enterprise, likely annual for standard merchants.
Free Trial
No (credit card required)

About Affirm

Affirm is a financial technology company that provides buy now, pay later (BNPL) services to consumers, enabling them to make purchases with flexible payment options. It also offers solutions to businesses to help them increase average order value, maximize conversion, and build customer loyalty.

Founded: 2012 · Headquarters: San Francisco, California, USA · Employees: 1000+ · Public