BNPL Service Company Affirm Expanding Into the UK

Affirm, one of the largest providers of buy now, pay later (BNPL) credit services, is coming to the United Kingdom. Under the approval of the U.K.’s Financial Conduct Authority, Affirm will offer both interest-free and interest-bearing plans to consumers.

Since its founding over a decade ago, American fintech firm Affirm has partnered with more than 300,000 merchants, including Walmart and Amazon. The BNPL pioneer has even managed to win over Apple.

However, Affirm’s launch into the U.K. will not come with the likes of Amazon or Apple. The company will first offer BNPL services through a booking site named Alternative Airlines and payments processor Fexco. Partnerships with other U.K. companies likely won’t be far behind. If successful, odds are international brands as well as major retailers will eventually want in.

According to TechCrunch, Affirm is bringing on about 30 employees to help with the U.K. launch. Expanding BNPL services to other European countries is possibly on the table as well, but Affirm has not yet confirmed such plans.

BNPL Services Under the Watchful Eye of Government

BNPL services are a convenient and sometimes interest-free way for consumers to make purchases. Instead of paying for an item all at once, the cost will be broken up into smaller, more manageable payments. The idea is a win for everyone involved: A business can sell more goods, customers are encouraged to make larger purchases, and Affirm takes a little piece through a merchant fee.

However, BNPL services have been on the radar of government regulators lately. In May, the U.S. government’s Consumer Financial Protection Bureau (CFPB) announced new rules aimed at greater transparency and enhanced customer rights.

Meanwhile, the U.K. has been mulling its own set of BNPL regulations, which will apply many of the same rules credit cards must follow. Under the proposed rules, BNPL providers must evaluate a consumer’s ability to pay, clearly explain financing terms, and give consumers strong rights when disputes arise.

Affirm welcomes the increased scrutiny. The fintech noted that regulations keep competitors honest while at the same time building trust with consumers.

“Generally speaking, we welcome regulation that is thoughtful, that pushes the work onto the market to do the right thing, but also knows how not to be too cumbersome on the end-customer,” Affirm CEO Max Levchin told CNBC.