Affirm is looking to further expand its BNPL financing into home services like plumbing, air conditioning maintenance, and other professional services, according to its CFO Rob O'Hare who spoke at a recent fireside chat with shareholders.
To demonstrate growth in these service areas, O'Hare noted the company's new partnerships with:
- ServiceTitan– a platform for hiring in-home professionals like plumbers and HVAC specialists.
- Vagaro – a platform that powers beauty salons, fitness centers, and tattoo parlors.
- Tekmetric and Shopmonkey – two workflow management platforms for auto repair shops.
O'Hare said there was “a lot to like” about service businesses, pointing out the higher order values of home improvement projects and car maintenance over typical e-commerce purchases. He said:
“Those can be large-ticket items, and I think they’re also pretty considered purchases and something that we can help with in terms of driving affordability and smoothing the cost of those services over the course of several months for the consumer. That’s an area that we’re seeing nice traction, and we’re pretty bullish on today.”
PYMNTS reports that services accounted for 3% of Affirm's GMV in the most recent quarter, but grew 39% YoY, surpassing travel, fashion, and electronics.
Affirm isn't the only BNPL firm targeting lucrative professional service industries. The company faces competition from startups like:
- Wisetack – focuses on home services like HVAC, plumbing, electrical, roofing, and pest control, as well as auto repair, elective medical procedures, dental, and veterinary services.
- Citizens Pay – focused on home renovation contractors and service providers.
- Credee – focuses on service providers like dentists and home improvement contractors.
- QuickFee – targets professional service providers with its own in-house white label BNPL financing.
- Sunbit – for in-person services; big in auto service and dental.
- GreenSky – for amortizing jobs with contractors.
- and dozens of others!
