Affirm, a leading American fintech company, has launched its ‘buy now, pay later’ (BNPL) service in the UK, marking its first major international expansion. Founded in 2012, Affirm offers flexible payment options that allow consumers to pay over time, without incurring late fees.
Affirm’s CEO, Max Levchin, revealed that the company has been preparing for this UK debut for over a year due to strong demand from British merchants. The UK was chosen as the first overseas market because of its size and the widespread use of English, making it an ideal fit for Affirm’s services.
The company’s UK offering includes both interest-free and interest-bearing monthly payment plans. Interest will be fixed and calculated on the original principal amount, ensuring it does not increase or compound over time. Affirm, which is authorized by the Financial Conduct Authority, prides itself on a consumer-friendly approach, not charging late fees or using deferred interest.
Competitive Landscape
The BNPL market in the UK is highly competitive, with established players like Klarna, Clearpay, Zilch, and PayPal. However, Levchin believes Affirm’s longer-term payment programs, which can extend up to 36 months, set the company apart.
Regulation and Consumer Protection
Affirm’s launch coincides with the UK government’s ongoing consultation on regulating the BNPL industry. Proposed regulations aim to ensure transparency, affordability, and consumer rights protection. Levchin has expressed support for thoughtful regulation that protects consumers without being overly burdensome.
“We welcome regulation that encourages responsible lending and protects consumers,” Levchin said. “Affirm is committed to automating processes to ensure safe and fair lending practices.”
Looking Ahead
With over 50 million global users and partnerships with major brands like Amazon, Shopify, and Walmart, Affirm is well-positioned for success. Initial UK partners include Alternative Airlines and payments firm Fexco, with plans to onboard more merchants soon. Levchin sees this expansion as a stepping stone for further international growth.
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
→ 
→ 
→ 
→ 
→ 
→ 
→ 
