Affirm Begins Rollout of Pay-Over-Time Options in UK

Affirm launched its pay-over-time options in the United Kingdom.

The company will initially offer its interest-free and interest-bearing monthly payment options, with any interest applied being fixed and calculated solely on the original principal amount, Affirm said in a Monday (Nov. 4) press release emailed to PYMNTS.

There are no late fees or hidden charges, the release said, adding that nearly one-quarter of users of buy now, pay later (BNPL) solutions in the U.K. were charged late fees in 2023.

“We know that U.K. consumers are savvy shoppers who appreciate upfront, no-nonsense products,” Affirm founder and CEO Max Levchin said in the release. “We look forward to offering them responsible credit options that truly put consumers first and working collaboratively with our U.K. partners to demonstrate how honest finance is good business.”

Affirm already operates in the United States and Canada, and it has processed over $75 billion in transactions in those countries over the past five years, according to the release.

In the U.K., the company is launching with flight booking site Alternative Airlines and FinTech and payments processor Fexco. It expects more U.K. and international brands to follow, the release said.

Alternative Airlines customers can select Affirm at checkout and, if approved, choose a monthly payment plan for their flight purchases, per the release.

Sam Argyle, managing director of Alternative Airlines, said in the release: “Consumers demand payment choice, flexibility and transparency at checkout, and Affirm delivers all three.”

Fexco’s international clients with a U.K. presence can integrate Affirm and offer it to their customers at checkout, according to the release.

Brian Cleary, CEO of Fexco OpenConnect, said in the release that Affirm’s “customizable terms and steadfast commitment to never charging late and hidden fees, like compound interest, ensure that our partners can fully benefit from Affirm’s consumer-centric approach.”

It was reported in January that 22% of British BNPL users, and 34% of those between the ages of 18 and 24, were charged late fees in the six months leading to December 2023.

In October, the U.K. government said it aims to provide BNPL users with many of the protections provided by other consumer credit products.