Affirm has launched its pay-over-time options in the United Kingdom.
While nearly one-quarter of buy now, pay later users in the UK were charged late fees in 2023, Affirm does not have any late fees or hidden charges. Affirm underwrites every individual transaction before making a real-time credit decision and only approves consumers following an assessment that evidences their ability to repay.
Affirm’s expansion to the UK adds to its presence in the US and Canada. This will enable Affirm to further build upon its growing network of 50 million consumers and more than 300,000 active merchants worldwide, including brands such as Amazon, Shopify, and Walmart. The company has processed more than $75 billion over the last five years.
In the UK, Affirm will initially offer its interest-free and interest-bearing monthly payment options. Any interest applied will be fixed and calculated solely on the original principal amount, meaning the amount of any interest does not ever increase or compound. Consumers will always know what they owe upfront. Affirm is authorized and regulated by the Financial Conduct Authority.
Affirm is launching in the UK with Alternative Airlines, a flight booking site, and Fexco, a global fintech and payments processor. Eligible Alternative Airlines customers can now select Affirm at checkout, go through an eligibility check, and, if approved, select from monthly payment plans for their flight purchases. Additionally, Fexco’s international clients with a UK presence can easily integrate Affirm and offer it as a payment option to their customers at checkout.
“Building on our leadership in the US and Canada, where we partner with top retailers and commerce platforms, we see a significant opportunity to extend our mission of building honest financial products to the UK,” founder and CEO Max Levchin said. “We know that UK consumers are savvy shoppers who appreciate upfront, no-nonsense products. We look forward to offering them responsible credit options that truly put consumers first and working collaboratively with our UK partners to demonstrate how honest finance is good business.”
“We are proud to have Affirm establish a presence and open for business in the UK,” Minister for Investment Poppy Gustafsson said. “Their substantial investment will not only help create tech-savvy jobs but underscores their confidence in the UK economy.”
With over 2,000 staff worldwide, the company has more than 30 employees in the UK and plans to hire additional UK-based staff this year. Similar to their international colleagues, UK employees will have the opportunity to work remotely and meet in person regularly.
The UK business is led by Ruth Spratt, VP and country manager. With more than 25 years of leadership experience across the payments, media, and travel industries, Spratt most recently served as UK country manager and board director for payments provider Zip.
“The UK’s open economy, mature consumer market, and world-class talent make it the perfect place for the next phase of Affirm’s journey,” Spratt said. “By entering the UK alongside a leading travel provider and platform partner, we’re able to expediently and deliberately begin growing (our) UK network of consumers and merchants.”
“Their 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,” Brian Cleary, CEO of Fexco OpenConnect, added. “We look forward to working with Affirm to empower more travellers to enjoy memorable experiences.”
“Consumers demand payment choice, flexibility and transparency at checkout, and Affirm delivers all three,” Alternative Airlines managing director Sam Argyle said. “Over the last five years, we’ve seen the value that they deliver to our U.S. travellers and, more recently, with our Canadian travellers. We are incredibly excited to offer personalized payment options in the UK.”
