- Affirm is launching its services in the U.K., marking its third market entry following the U.S. and Canada.
- U.K. shoppers can now access Affirm’s interest-free and fixed-interest BNPL options.
- Affirm joins Klarna, Clearpay (Afterpay), and Laybuy as major BNPL players in the U.K. region.
California-based buy now, pay later (BNPL) player Affirm announced this week that it is taking its services overseas. The company is now allowing U.K. consumers to use its pay-over-time payment tools to receive more flexible payment options.
The move marks Affirm’s third geography and will add to the company’s network of 300,000 merchants and 50 million end customers in the U.S. and Canada. At launch, U.K. shoppers will have access to Affirm’s interest-free payment option as well as its interest-bearing option that applies a fixed interest on purchases calculated on the original payment amount.
“Affirm was founded on the premise of putting people first and empowering consumers to take greater control over their finances. Building on our leadership in the U.S. and Canada, where we partner with top retailers and commerce platforms, we see a significant opportunity to extend our mission of building honest financial products to the U.K.,” said Affirm Founder and CEO Max Levchin. “We know that U.K. consumers are savvy shoppers who appreciate upfront, no-nonsense products. We look forward to offering them responsible credit options that truly put consumers first and working collaboratively with our U.K. partners to demonstrate how honest finance is good business.”
Affirm, which is regulated by the U.K. Financial Conduct Authority (FCA), is launching in partnership with payments processor Fexco and flight booking site Alternative Airlines, which will be the pilot merchant for Affirm’s BNPL tools. The company plans to announce additional U.K. and international brand partnerships in the future.
“There are many brilliant businesses in the U.K. that make this country what it is – and we can’t wait to start working with them,” said Affirm’s U.K. Country Manager Ruth Spratt. “The U.K.’s open economy, mature consumer market, and world-class talent makes it the perfect place for the next phase of Affirm’s journey. By entering the U.K. alongside a leading travel provider and platform partner, we’re able to expediently and deliberately begin growing Affirm’s U.K. network of consumers and merchants. We look forward to continuing to expand in the coming months.”
Spratt, who most recently served as U.K. Country Manager and Board Director for Affirm competitor Zip, will lead a team of more than 30 U.K. employees to expand Affirm’s merchant and channel partnerships. Spratt plans to onboard more staff by the end of the year, adding to Affirm’s base of 2,000 employees across the globe.
Founded in 2012, Affirm has facilitated more than 17 million purchases and counts brands including Amazon, Shopify, Walmart, and others among its merchant partners. In the past five years, the company has processed more than $75 billion. Affirm, which went public in 2021, currently trades on the NASDAQ under the ticker AFRM with a market capitalization of $13.8 billion.
Affirm’s entry into the U.K. BNPL market adds a competitive new player to the space, which already hosts established players including Klarna, Clearpay (Afterpay), and Laybuy. While Affirm will face strong competition from these brands, the company’s reputation for transparency may resonate with consumers, and will prove helpful as the FCA prepares to tighten regulatory oversight on BNPL providers by requiring affordability checks, advertising standards, and credit reporting.