For the first time, customers at more than 4,500 Walmart stores have the option to pay at self-checkout kiosks via buy now, pay later (BNPL) loans. Anyone who buys at least $144 of non-grocery products at the big-box retailer will be able to divide their payments, over anywhere from three to 24 months, through the Affirm app.
After scanning their purchases at Walmart’s self-checkout, shoppers can log onto Affirm’s app or website and enter their personal details. Approved shoppers will then receive a barcode to finalize the terms of the payment.
Affirm is a payment network that has been a leader in the burgeoning BNPL space. Earlier this year, Affirm announced a partnership with Amazon for BNPL services on its website. Last week, the company announced that beginning Q1 2024, it will be available as a payment option for some merchant apps and websites that offer Google Pay at checkout.
Affirm has been available with employee assistance since 2019 at 4,000 Walmart stores. By tapping into the service at self-checkout kiosks, shoppers might be even more inclined to add purchases to their order if they have the option to pay in smaller, future installments.
The Growth of BNPL
BNPL has become a major payment method for U.S. customers, especially as household budgets have been strained under inflationary pressures and fears of a recession loom on the horizon. According to financial services tech firm FIS, BNPL services now account for 5% of e-commerce payments globally. With the new Affirm option, Walmart is staying in tune with the payment needs of its customers, giving them more ways to pay even at self-checkout lines.
Only time will tell if the BNPL option is user-friendly enough to be adopted in a widespread manner.
“From how it is described, customers will need to login to the Affirm app and enter personal details, including their social security numbers, to apply for the loan and then through a barcode can finalize the payment at the POS device,” said Ben Danner, Senior Analyst of Credit & Commercial at Javelin Strategy & Research.
“The process seems a bit clunky when you compare it to tapping a physical card, especially if you are holding up the self-checkout line,” he said. “I would prefer to pay quickly and choose my financing terms after I am out of the store. It also requires some mental math on the part of consumers to reach $144—a number that feels entirely arbitrary—of products that are not groceries.”
