Country: United States
Year: 2012
- Affirm is mainly targeting millennials by providing them with more spending flexibility than traditional credit products
- Concept design: To make the underwriting decision, Affirm’s algorithms pore through all kinds of data from credit bureau reports to social networks. Such a concept design could be leveraged by banks
Concept
- Affirm provides easy financing with consumers to buy the things they love, and helps merchants boost revenues by significantly increasing average order values, conversions and repeat purchasing
- For merchants,
- Affirm helps to improve sales conversions, boost basket sizes, and increase customer happiness
- Affirm issues Virtual Cards with loan funds that can be used exclusively on merchant’s website
- Affirm builds API for merchants to provide customers with more financing options
- Affirm loans vary between 10% and 30% APR simple interest and it doesn’t charge hidden fees such as late fees, service fees and prepayment fees. Loans are made by Cross River Bank, which is a New Jersey-chartered bank.
- According to the company, the average loan amount an Affirm user takes on is $400, and the majority of its clients choose to finance their purchase for nine months
Consumer Benefits
- Simple: checkout is easy at any store that accepts Affirm. Consumers just need to enter some basic information for an instant loan decision
- Safe & Secure: Affirm encrypts all sensitive user data, and confirms every purchase via text message to prevent unauthorized use of user account
- Flexible: consumers can choose to pay off their purchases over 3, 6, or 12 months
- Fast: loan approval is instant
How to use
New applicants simply:
- Enter a few basic pieces of information
- Enter a security pin sent by text to verify their identity
- Review loan options
- Pick the loan that is right for them
- Confirm the purchase and receive the loan approval in seconds
Illustration
https://youtu.be/RiWBAcalSik