Affirm, who ranked 23rd on the 2020 CNBC Disruptor 50 list, said the new payment option and the partnership reflects how small businesses need to reinvent themselves with e-commerce strategies and meet young buyers where they prefer to buy. Shopify is one of the fastest growing commerce platforms for businesses that want to sell direct to consumers and has seen a dramatic increase in the value of stocks this year.
“We can help merchants seamlessly activate a term-of-payment option at checkout. In doing so, we help them reach new customers, especially Gen Z and Gen Y, who are looking for more transparent and flexible payment methods, ”says Founder and CEO Max Levchin in a press release.
Levchin, who is also one of the original founders of PayPal, echoed the remarks Wednesday in an interview on CNBC’s “Closing Bell,” adding that the fintech company has already seen “incredible traction on Shopify” in terms of adoption by users.
According to the company, Affirm’s current “buy now, pay later” alternative is available at more than 6,000 merchants in the United States and used by 5.6 million people. In the wake of the Covid-19 pandemic, there has been a massive increase in digital adoption in recent months.
“I think the shift from offline spending to online spending is very powerful. I think it’s here to stay, ”Levchin said, noting that the demographics of Affirm users have changed with adoption, now including older customers like her 72-year-old man. mother. “I think that will eventually slow down a bit… but I don’t think the trend is going to reverse. ”
Levchin said the biggest winners from the change in buying habits will be digital platforms – not necessarily the merchants themselves. “When you look at retailers with big… platforms, the vendors that allow merchants to serve customers where they are, which is online, will be huge winners,” he said. -he declares. “On the consumer side… I think the credit card age is fast approaching – I wouldn’t call it an end, but a viable alternative to the buy-now-pay-later tools that are built around transparency, clarity and simplicity. ”
Affirm and Shopify will begin testing in the coming months, hoping to make “In-Store Payments” available to qualifying US merchants later this year. The consumer approval conditions for accessing the new “Shop Pay” option were not detailed.
Affirm is a two-time CNBC Disruptor 50 company.