By Hannah Lang
(Reuters) – Affirm Holdings Inc is partnering with digital payments processor Stripe Inc to offer buy now, pay later services to Stripe users in the United States.
Through the venture, Stripe merchants will be able to use Affirm’s adaptive checkout service, which allows customers to split purchases of up to $30,000 into installments, with a maximum credit limit of $17,500.
San Francisco-based Affirm has previously leveraged similar partnerships with Amazon.com Inc and Shopify .
“Stripe is just one of many fresh partnerships that we have signed, although probably one of the more exciting ones just because of how great the product is and just how large their reach really is,” said Max Levchin, Affirm co-founder and chief executive officer, in an interview.
Sophie Sakellariadis, payments product lead at Stripe, said in a press release that Stripe merchants can set up payments with Affirm in “mere minutes.”
BNPL firms like Affirm earn from charging merchants a fee to offer their customers small, point-of-sale loans which are paid back in interest-free installments. Affirm says that businesses that use their adaptive checkout service experience increased sales and cart conversions.
Earlier in May, Affirm reported that its third-quarter revenue surged 54%, surpassing the company’s estimates, as it benefited from higher interest income and loan sale volumes as well as a surge in users. Affirm said active merchants on its platform grew to 207,000 from 12,000 last year, while active consumers increased 137% to 12.7 million.
(Reporting by Hannah Lang in Washington; Editing by Chizu Nomiyama)