Affirm Holdings Inc. is seeing increasing interest from retailers in subsidizing U.S. consumer credit ahead of the vacation season as more shoppers turn to “buy now, pay later” providers to finance their spending.
CEO Max Levchin said more retailers are all for taking over interest-linked costs to supply interest-free loans to draw shoppers. Using “buy now, pay later” options increased by 16% to $67 billion from Cyber Monday shopping last yr, in response to Adobe Analytics.
“I see a lot of this coming, which is going to be great for consumers,” Levchin said in an interview with Bloomberg Television on Thursday. “They’re buying and paying their bills with Affirm – that seems to be going well.”
Levchin said last month that Affirm exceed growth from rivals within the highly competitive buy now, pay later sector, including Klarna Bank AB, which is preparing for an IPO. He reiterated on Thursday that the corporate is experiencing “huge demand”.
Affirm shares recently received a lift from act with Apple Inc. to present Apple Pay users access to the installment payment offers that went live this week.
“We have become known for our good partnerships,” said Levchin.
