FIS (NYSE: FIS), a global enabler of financial technology, announced a partnership with Affirm (NASDAQ: AFRM), the payment network that can empower consumers and help merchants drive growth, making Affirm its integrated pay-over-time provider for debit issuers.
FIS and Affirm will deliver a program that enables FIS’ network of banking clients to “integrate Affirm’s solution into their existing debit program via their digital banking and mobile app platforms, allowing their customers to easily manage their finances in a single place.”
This collaboration is said to be “well-timed,” as banks are reportedly searching for new and innovative options to “meet consumer needs and demands for flexible purchasing solutions.”
This program offers an opportunity for financial institutions to provide a “pay-over-time solution to the millions of U.S. consumers who have a debit card.”
By integrating Affirm’s offering into banking products, FIS continues to unlock growth opportunities for clients “across the money lifecycle, help meet the demands of the growing market and strategically position financial institutions to capitalize on the offering’s potential by fostering customer loyalty and accelerating growth.”
Jim Johnson, co-president, Banking Solutions, FIS said:
“Customer conversion and retention have become major priorities for card-issuing banks in our increasingly digitized economy, where consumers have endless options. Consumers today are looking for innovative and user-friendly experiences that give them flexibility and control over their money and optimize how their money is put to work.”
This program will deliver Affirm’s technology, flexible payment options, and merchant network to their banking clients, enabling them to “continue meeting these needs and offer more competitive, differentiated services through their own banking channels.”
When the program launches, participating FIS debit processing banks will be able to “offer their eligible customers biweekly and monthly payment plans through the bank’s existing debit card products.”
Additionally, these banks will have the potential to “unlock merchant-funded financing offers – including 0% APRs, longer payment terms, and higher credit limits – from Affirm’s over 335,000 merchant partners for their debit cardholders.”
This will enable significantly more consumers to “access the benefits of Affirm when paying over time online and in-store.”
Affirm will manage underwriting and servicing, seeking to “provide a frictionless experience for participating FIS clients and their customers.”
By integrating with Affirm, FIS continues its mission of unlocking financial technology across the money lifecycle, with the aim of “ensuring that every stage of financial transactions—from savings to payments to investments—is seamless, reliable.”