Affirm Is Now Officially Live In The UK

Affirm, one of the largest Buy Now, Pay Later (BNPL) platforms in North America has now successfully brought its service to the UK.

Affirm Expands Into The UK

Affirm was founded in 2012 and it went public in 2021. In the last five years, the company processed over $75 billion in transactions in North America, mainly the US and Canada. Now, with the interest in BNPL services skyrocketing, the company sought to expand into the UK, which led it to seek FCA authorization.

Gaining the necessary licenses and regulatory permissions, the firm started landing in the UK, initially offering its interest-bearing and interest-free monthly payment options. 

Speaking about its arrival in the UK, Affirm said that, while almost one-quarter of BNPL in the UK were charged late fees in 2023, it doesn’t have any hidden charges or late fees. It stressed that it underwrites every individual transaction before it makes a real-time credit decision.

The company also managed to score some major partnerships, including the flight booking website, Alternative Airlines, as well as Fexco — a major fintech and payments processor. While this is a great start to launching its UK business in earnest, the firm is expected to team up with more partners in due time.

Affirm’s Entry Into The UK Market Comes Ahead Of BNPL Regulations

Affirm’s CEO, Max Levchin, commented on the company’s launch in the UK, saying that Affirm is aware that UK customers are savvy shoppers who appreciate upfront, no-nonsense products. This is why Affirm seeks to offer them responsible credit options that would truly put consumers first. 

The BNPL giant also plans to collaborate with its UK partners to demonstrate how honest finance can be quite lucrative and profitable.

Apart from that, Affirm also started growing its UK team. Right now, there are 30 employees in the company’s UK branch, led by Ruth Spratt who acts as the VP and country manager.

Meanwhile, the country’s Minister for Investment, Poppy Gustafsson, stated that the UK is proud to have Affirm establish a presence and open for business. Gustafsson noted that Affirm’s substantial investment will help create tech-savvy jobs, and on top of that, it underscores their confidence in the country’s economy.

It is also worth noting that the firm entered the UK market less than two years after withdrawing from Australia, and just before the UK introduced new rules for the BNPL sector. The government just launched a consultation on its proposals. The proposals will bring companies in the sector into the FCA’s jurisdiction, and apply the Consumer Credit Act.

This will ensure that the users receive clear information, have strong rights when issues arise, and avoid unfavorable borrowing.