Affirm

Affirm is a fintech company that provides a point-of-sale lending platform for online and in-store purchases. Founded in 2012, Affirm offers consumers an alternative to traditional credit cards and loans by providing transparent, easy-to-understand financing options at the time of purchase. Here’s how Affirm works:

1. Application: When a customer is ready to make a purchase, they can choose Affirm as the payment option at checkout. The customer then provides some basic information to Affirm, including their name, address, and date of birth.
2. Credit check: Affirm performs a soft credit check to assess the customer’s creditworthiness and determine if they are eligible for financing. This check does not affect the customer’s credit score.
3. Financing options: If the customer is approved, Affirm presents them with a range of financing options, including the interest rate, monthly payment, and repayment term. The customer can choose the option that best fits their budget and needs.
4. Payment: Once the customer selects a financing option, they complete the purchase with Affirm. Affirm pays the merchant in full, and the customer begins making payments directly to Affirm on the agreed-upon schedule.
5. Repayment: Affirm offers flexible repayment options, including monthly installments or a one-time payment. Customers can also pay off their loan early with no penalties or fees.
6. Customer support: Affirm provides customer support through phone, email, and live chat, and has a comprehensive FAQ section on its website to help customers troubleshoot any issues they may encounter.

Affirm is primarily used for purchases of high-ticket items, such as furniture, appliances, and electronics, but can also be used for smaller purchases. It is similar to other point-of-sale lending platforms like Afterpay and Klarna, but Affirm’s focus on transparent pricing and customer education sets it apart.

Here are some of the main features of Affirm:

1. Point-of-sale financing: Affirm provides consumers with financing options at the point of sale, which means they can choose to pay for their purchases over time, instead of all at once.
2. Transparent pricing: Affirm offers customers clear and transparent pricing, with no hidden fees or compounding interest. Customers are presented with a range of financing options, including the interest rate, monthly payment, and repayment term, so they can choose the option that best fits their budget and needs.
3. No late fees or prepayment penalties: Affirm does not charge late fees or penalties for prepaying a loan. Customers can pay off their loan early with no penalties or fees.
4. Soft credit check: Affirm performs a soft credit check to assess the customer’s creditworthiness and determine if they are eligible for financing. This check does not affect the customer’s credit score.
5. Mobile app: Affirm has a mobile app that allows customers to manage their loans, make payments, and track their repayment progress.
6. Customer support: Affirm provides customer support through phone, email, and live chat, and has a comprehensive FAQ section on its website to help customers troubleshoot any issues they may encounter.
7. Partnership with merchants: Affirm partners with a wide range of merchants, both online and in-store, to offer financing options to their customers.

Overall, Affirm is designed to provide consumers with an alternative to traditional credit cards and loans, with transparent pricing and flexible repayment options.