Country: United Statesaffirm
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


  • 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:

  1. Enter a few basic pieces of information
  2. Enter a security pin sent by text to verify their identity
  3. Review loan options
  4. Pick the loan that is right for them
  5. Confirm the purchase and receive the loan approval in seconds


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