Are Grocery Customers Really Hungry for Buy Now, Pay Later?
Affirm claims a short-term loan for groceries is good for consumers
Buy Now, Pay Later provider Affirm is suggesting that consumers want the opportunity to use short-term loans to finance groceries — especially during a time of rising prices.
The news comes courtesy of a story in American Banker.
The story notes:
Affirm’s newest product, which ties a buy now/pay later loan to a debit card, is finding favor with food shoppers.
“We wanted to be the thing that people take to go shopping for their family, to give them financial flexibility,” Max Levchin, Affirm’s founder and chief executive, said during a Thursday conference call with investors to discuss the company’s fiscal third-quarter results.
Here’s how it works in practice:
Affirm works with Plaid to instantly determine whether a Debit+ user qualifies to turn a purchase into a four-segment loan, borrowing up to $1,500 below the customer’s bank account balance. Users have the option to convert Debit+ payment plans to a loan, subject to approval, according to the product’s terms and services.
So, you’re at the store and the bill is a bit higher than you planned due to…
