Affirm launched its BNPL payments in the U.K., marking its first expansion beyond the U.S. and Canada since entering the Australian market in Nov 2021 and later exiting it in February 2023.
CEO Max Levchin said that the reason Affirm chose Britain as its next overseas expansion target was because it saw a lot of demand from merchants in the country. Levchin noted, “It is a huge market, it’s English-speaking,” making it a great fit for the business.
That's all it takes? English speaking consumers with a pulse and fingers ready to click their Pay In Installments button? LOL.
The company is launching in the U.K. with flight booking site Alternative Airlines and payments processor Fexco, with more brands and platforms to follow.
Watch out Klarna! AI might enable you to fire most of your staff, but it won't protect you from big competition like Affirm. Aside from Klarna, the U.K. BNPL market also includes heavy competition from Block's Clearpay, Zilch, and PayPal, which entered the BNPL market in 2020.
Affirm said that it differs from these players by allowing customers to pay purchases off over much lengthier periods, such as its 36 month payment program. The company also notes that it doesn't charge late fees or do deferred interest, making it “thoughtfully pro-consumer.”
In other Affirm news, the company updated its mobile app with new features that allow shoppers to view their estimated spending limit on the home screen, review and manage payment plans, view credit offers, and open an Affirm Money Account. Affirm says that 80% of its customers have downloaded its app and that it wanted to provide a better mobile experience in time for the upcoming holiday season.