ShopVenture Blog - Payment App Investigation: Affirm

Payment App Investigation: Affirm

17 Nov 2016

“We want it now, we want it fast, and we want to pay for it later.”

- The 21st century shopping anthem


Meet Affirm, the new payment app for the online generation. Consumers want seamless options and quick solutions at every turn of their online shopping journey. It’s the millennial way of thinking, and it’s driving the fashion e-commerce market at full force.


To maintain a point of difference and provide maximum opportunities for sales, your brand needs to examine alternative payment methods. Max Levchin, Co-Founder of Paypal, founded Affirm in 2012, an online payment method that echoes this shopping anthem.


Let’s be honest, it’s not called “Affirm” because consumers are likely to say no.

Affirm is a middleman loan system that provides the merchant with payment up-front, while they create a loan agreement directly with the consumer.


For merchants, Affirm promises to increase average order value, boost checkout conversion and provide guaranteed purchases with fast settlement. For customers, it’s an alternative payment method that’s not just immediate, but avoids involvement from banks (phew!).


So…should your brand be quick to jump on the Affirm bandwagon? ShopVenture had a closer look at the pros and cons of this new-age payment method.




This is a case of ‘the more options, the better’. If your sales will benefit, why not consider it? Examine the price point of your items and the likeliness that your customer base would utilise a loan method. If providing another option to purchase will secure a sale, it’s going to be worth your while. Remember, not everyone has a credit card!


For consumers, Affirm offers a loan with fixed monthly repayments, a low interest rate and no pre-payment penalty. The instantaneous access to a small loan undoubtedly makes its use far more appealing. If a customer really wants your item and it’s only their finances that’s halting them, Affirm is the way to go.




Security can be a major concern when aligning with alternative financing. If anything was to happen to Affirm or their investors, you could potentially have delays with payment. Do your research, read reviews (wink!) and evaluate your options.


To Sum It Up


If you’re selling big ticket items or your target customer has the millennial “I want it now” mindset, Affirm might be a game changer for your bottom line.