• FIS is partnering with Affirm to enable banks using its debit processing services to integrate Affirm’s BNPL payment options.
• FIS clients can now offer consumers pay-over-time solutions including both biweekly interest-free installments and longer-term financing plans.
• Offering BNPL tools can help smaller financial institutions stay competitive, improve their digital offerings, and meet evolving consumer demands.

Payment, banking, and investment systems provider FIS and buy now, pay later (BNPL) player Affirm have teamed up this week. The partnership will allow FIS to enable its debit processing bank clients to integrate Affirm’s BNPL solution into their existing debit card program.

Affirm offers two different payment products, Pay in 4 and Monthly Installments. With Pay in 4, shoppers can split up purchases ranging from $50 to $1,000+ into four interest-free installments paid every two weeks. The Monthly Installments tool is a more traditional borrowing product that allows consumers to finance purchases ranging from $50 to $5,000+ over the course of three to 60 months with a rate of 0% to 36% APR.

FIS anticipates that integrating Affirm’s tools into banking products will help its clients meet evolving consumer demands, ultimately fostering customer loyalty and boosting growth. The company’s debit processing clients can offer their eligible customers biweekly and monthly payment plans via the bank’s existing debit card programs. Banks can also leverage Affirm’s traditional financing offers, funded by Affirm’s 335,000+ merchant partners.

“Customer conversion and retention have become major priorities for card-issuing banks in our increasingly digitized economy, where consumers have endless options,” said FIS Co-president of Banking Solutions Jim Johnson. “Consumers today are looking for innovative and user-friendly experiences that give them flexibility and control over their money and optimize how their money is put to work. That’s why so many of them choose to pay with Affirm. This new program will deliver Affirm’s leading-edge technology, flexible and transparent payment options, and extensive merchant network to our banking clients, enabling them to continue meeting these needs and offer more competitive, differentiated services through their own banking channels.”

This move is particularly significant for FIS’ smaller financial institution clients, such as credit unions and community banks, as it provides a straightforward way to offer BNPL tools to their customers. By integrating these options, institutions can enhance the customer experience with greater payment flexibility while positioning themselves as more tech-savvy and innovative. This distinction can be crucial in attracting and retaining customers in a competitive landscape.

“Millions of consumers prefer using a debit card from their trusted financial institution, and we believe they should have easy access to exceptional credit options through their preferred payment method. That’s why, for the first time, we’re bringing Affirm’s proprietary underwriting technology and full suite of pay-over-time solutions to third party issuers in partnership with FIS,” said Affirm Chief Revenue Officer Wayne Pommen. “This new program will expand access to Affirm’s wide range of payment options, giving more consumers a responsible way to pay over time. It will also connect them directly to Affirm’s vast and growing merchant network – delivering an even more valuable and differentiated experience.”

Established in 1968 and based in Florida, FIS serves 15,000 clients across the globe. The company’s product suite includes payment solutions, risk management services, and customer communication tools. Its technology supports the processing of $50 trillion in transactions annually and oversees assets totaling $16 trillion.

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• FIS is now certified to offer send capabilities for FedNow.
• Adding FedNow send capabilities enhances FedNow’s real-time payment services for bank clients and enables instant credit transfers.
• As of late last year, 60% of FedNow participants can receive payments, only 40% have adopted sending capabilities.

Payment, banking, and investment systems provider FIS announced today that it is now certified to enable send capabilities for FedNow instant payment credit transfers.

FIS was an early adopter of FedNow, and was one of the first institutions to enable its customers to receive FedNow payments after the technology launched in July of 2023. Adding send capabilities, along with real-time transfer alerts, allows FIS to bring its bank clients a more comprehensive payments experience.

“As money moves between banks, consumers, businesses, and beyond in a complex cycle, credit and debit cards continue to play a leading role in the payment experience,” said FIS Head of Cards and Money Movement Chris Como. “However, slow or delayed transfers can harm customer loyalty when they need to pay loans, rent, or time-sensitive bills on any given day. Giving the end user direct access to send payments instantly using FedNow marks a huge milestone in our efforts to enable a harmonious payments experience for our clients and the customers they serve.”

This announcement comes after it was reported that only 40% of firms have signed up to send payments using FedNow, as of late last year. In comparison, close to 60% of the financial institutions on board with FedNow are able to receive payments. As of last month, more than 1,000 financial institutions have enrolled in the FedNow Service. The Federal Reserve maintains a list of participating financial institutions on its website.

The lack of banks willing to send payments over FedNow may be caused by a handful of factors. Implementing the necessary infrastructure to send payments requires more technological investment and operational considerations than simply receiving payments. Additionally, faster payments leads to faster fraud, including authorized push payment (APP) fraud, where fraudsters trick users into sending money to them. Also, at a time when banks are seeking to increase their deposits, it doesn’t benefit them to make it easy for customers to send money.

Founded in 1968, FIS is headquartered in Florida. The firm, which counts 15,000 clients across the globe, offers a wide range of products and solutions, including payment capabilities, risk management tools, customer communications products, and more. FIS-powered tools process $50 trillion annually and hold $16 trillion in assets.

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