The Financing Trend Continues with Affirm & Shopify
If I were a betting man, and you were an Internet retailer of high-priced items, I would bet all my virtual currency that you'll be introducing financing at your online store.
Why? Well, not only are there numerous solutions available to help online sellers offer the option, but it works - and works really well - when it comes to increasing average order value and the lifetime value of customers.
There are several solutions available - including those from both Vyze and PayPal - but another that is capturing the attention of online stores and Internet retailers is that of Affirm, a company started by PayPal co-founder Max Levchin.
Affirm, which recently announced that it joined the Shopify Plus Technology Partner Program, is a solution that enables shoppers visiting one of 1,000 different active retailers to pay for purchases across multiple months (financing) with transparent and simple interest loans that don’t charge compounding interest or late fees, unlike traditional credit cards. Affirm is appealing to retailers because of the low risk as the company pays them in full at the time of settlement and also takes responsibility for most fraud.
Affirm currently works with more than 300 retailers on Shopify and Shopify Plus including high growth merchants Purple, Leesa, Boosted Boards, Chicago Music Exchange, Brooklinen and Drones Etc.
“We are thrilled to welcome Affirm to the Shopify Plus Technology Partner Program. This collaboration recognizes the best-in-class solutions that, together with Shopify Plus, further enable the rapid growth and innovation possibilities of today’s modern merchant,” said Jamie Sutton, Head of Technology Partnerships, Shopify Plus.