BNPL provider Affirm Holdings Inc. has struck a multi-year partnership with payment processor Worldpay to make its Adaptive Checkout solution available to Worldpay merchants. The deal will enable Worldpay merchants to offer consumers bi-weekly and monthly payment options. Worldpay is a unit of the big processor FIS Inc.
The deal, which will provide buy now, pay later provider Affirm with access to more than 1 million Worldpay merchants globally, comes as Affirm’s financial performance has softened in the wake of interest-rate hikes by the Federal Reserve to combat inflation.
Consumers selecting Affirm as a payment option undergo a real-time underwriting process that includes a so-called soft credit check that does not impact their credit score. Approved customers will be able to split their purchases into bi-weekly or monthly payments with interest rates as low as 0%, and will not be charged late fees or hidden fees.
“It’s becoming increasingly important for merchants to provide pay-over-time payment solutions with consumer demand continuing to grow,” Jim Johnson, head of merchant solutions at FIS, says in a statement. “By integrating Affirm’s products at checkout, our merchants will be best-placed to capture new sales opportunities and revenue streams, helping them continue to grow into the future.”
Earlier this year, FIS announced plans to spin off Worldpay. FIS acquired the processor less than four years ago for $43 billion.