Affirm Announces In-Store Financing Options With Virtual Card Integration in Apple Pay

Discussion in 'iOS Blog Discussion' started by MacRumors, Mar 19, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    Affirm is a financial startup that allows users to pay for expensive items from select retailers in monthly installment plans, after they are first approved for a loan on the company's website or in the app. Today the company announced that users will now be able to secure credit in seconds and then checkout in retail stores thanks to integration of the Affirm virtual card into Apple Pay.

    To apply for Affirm financing, customers complete a "simple, five-field" application that provides them with a real-time credit decision (rates are between 10-30 percent APR based on personal credit). After approval, customers use the Affirm app to enter the amount they want to spend by selecting a payment plan on the item (3, 6, 12, 18, or 24 months), and Affirm loads up the cost of the full purchase onto the virtual card, paying the merchant for the item and taking on "all fraud risk for the purchase."

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    With the addition of Apple Pay, Affirm's virtual card can be used anywhere that Apple Pay is accepted.
    For merchants, Affirm says it provides two options to support the service: integration with the Affirm InStore API with their own point-of-sale system, or support Affirm's expanded virtual card experience. The company explained that regardless of what method merchants choose, the customer's retail checkout process is "virtually identical" to Affirm online and in the iOS app.

    Affirm founder and CEO Max Levchin told Bloomberg that the company hopes it will continue to expand and that more stores will "embrace" Affirm because of its ability to offer retailers "insights into customer purchasing habits."
    In its press release, Affirm detailed how Apple reseller Simply Mac switched from paper-based applications for loans on its private label credit card, to Affirm InStore's new process. Tiffany Polmateer, Simply Mac's director of purchasing and operations, said that since supporting Affirm it has seen a 20 percent increase in average order values, 63 percent more customer financing applications, and 34 percent more approvals per store.

    Affirm is available to download on the iOS App Store for free. [Direct Link]

    Article Link: Affirm Announces In-Store Financing Options With Virtual Card Integration in Apple Pay
     
  2. justperry macrumors G3

    justperry

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    10-30% APR, Wow.

    10% I can understand but 30%.....:(
     
  3. ArtOfWarfare macrumors G3

    ArtOfWarfare

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    Sounds like the newest take on payday loans to me...
     
  4. thisisnotmyname macrumors 68000

    thisisnotmyname

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    Not quite as sketch as Rent-a-Center type model but still. I suppose some people have really terrible credit and a secured loan with 30% APR is all they can manage.
     
  5. Nimrad macrumors 6502

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    If your credit is that bad you shouldn't be allowed to loan money in the first place if you ask me.
     
  6. thisisnotmyname macrumors 68000

    thisisnotmyname

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    I disagree. I don't think anyone should be totally locked out of credit markets. People need a path to recovery after bad choices or bad luck.
     
  7. JRobinsonJr macrumors 6502

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    Yes, but... there's a difference between "path to recovery" and "path to getting yourself into deeper trouble"... and a fine line between them.
     
  8. H3LL5P4WN macrumors 65816

    H3LL5P4WN

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    Is this a server-side roll out or is there a new version of the app needed?
     
  9. ignatius345 macrumors 65816

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    Yeah, and people can make their own mistakes and find that line for themselves. Maybe not on this forum for expensive Apple products, but there are a LOT of people in economic trouble in America. Treat them with compassion and understanding, because a lot of them are one bad bill away from bankruptcy. That's unfortunately why this kind of lending market exists in the first place.
     
  10. brinary001 macrumors 6502a

    brinary001

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    You should check out Discover’s upper limit for their APRs. Easily push 30%..
     
  11. wesk702 macrumors 68000

    wesk702

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    Affirm...making it easier to spend beyond your means. Now with a touch of a button.
     
  12. WAM2 macrumors 6502a

    WAM2

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    I’ve used affirm a few times. The 25-30% is only on pretty small amounts. Not a big deal.
     
  13. thisisnotmyname macrumors 68000

    thisisnotmyname

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    True. And that's a difficult balance to strike. We have usury and bankruptcy laws. I think they're far from perfect but we attempt to walk that line between reasonable risk for creditors to encourage lending to all and the ability to dismiss onerous debt if it accrues. I see a legitimate role for pay day lending and other high risk lenders in society. I think there needs to be reward available to encourage lending to a segment of society that otherwise would be ignored by potential creditors but I also think borrowers need the ability to dismiss debts if the debt itself threatens to take them out of mainstream society. Those are competing priorities that are very difficult achieve in equilibrium.
     
  14. justperry macrumors G3

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    Loans should be outlawed, there should be something else in place like an interest free government loan for people who need it.
    I think paying a lot for a mortgage is also stupid.
    Never had one single loan, maybe I am just lucky....
     
  15. ignatius345 macrumors 65816

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    You are lucky! Or maybe just rich? Most people aren't wealthy enough to buy a house or even a car just outright with cash.
     
  16. tmiw macrumors 68000

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    Hopefully Simply Mac fixed their terminals. I was at their Portland, OR location a couple of months ago and Apple Pay kept declining. According to the staff, "it doesn't work if your card has a chip".

    Though I guess if they've gone the API route for Affirm that might not matter as much.
     
  17. vmistery macrumors 6502a

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    That APR though! You can often get 0% deals either via companies like PayPal or on credit cards for at least a year here in the UK, is it different in the US? To me this also looks like it’s more targeting non essential purchases rather than things like a car or getting your house fixed in an emergency which make it look expensive and unnecessary.
    --- Post Merged, Mar 19, 2018 ---
    In the UK we have credit unions which support people with bad credit whilst helping them save, usually at much lower rates than payday lenders. They also often provide financial education, some are better than others but I think we should be encouraging people more towards them than payday lenders.
     

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