- 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.