Transaction lender Affirm is shifting gears and offering its customers a new cash back rewards program. Moving beyond buy-now-pay-later installment programs and consumer financing for large purchases, Affirm is moving to strengthen their brand with consumers beyond single transaction financing.
“With the average consumer planning to spend nearly $650 on gifts this holiday season, we’re excited to offer a way for shoppers to earn while they spend,” said Greg Fisher, Chief Marketing Officer at Affirm. “Now whether consumers want to pay in full and earn cash back or pay later by choosing a schedule that’s best for them, Affirm can offer that choice and flexibility. Giving consumers the opportunity to earn rewards also increases engagement. Three in four consumers who used Affirm Cash Back in our pilot said they were interested in making a second transaction.”
These new features will help Affirm stand out as its own brand that spans the retail spectrum, rather than merchant-specific financing for certain purchases. Cash back rewards along with a non-revolving option bring Affirm into the payments territory dominated by major brands like Visa and MasterCard, and also being challenged by PayPal and Meta’s new payments brand Novi. If Affirm structures their merchant fees and policies to create a better value proposition for the merchant than other payment brands, they’ll benefit from a huge tailwind as merchants help promote Affirm to consumers.
Overview by Don Apgar, Director, Merchant Services Advisory Practice at Mercator Advisory Group