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ACI Worldwide Inc. added to its growing list of buy now, pay later partners on Monday, announcing a deal with Affirm Inc. Merchants using the processor’s ACI Secure eCommerce solution can offer consumers the ability to make purchases with Affirm and split the cost of the purchase into biweekly or monthly payments.
ACI already partners with BNPL providers Klarna AB, Afterpay Ltd., and PayPal Holdings Inc.
“The partnership with Affirm strengthens the variety of choice for BNPL that ACI can provide merchants,” Debbie Guerra, head of merchant payments for ACI Worldwide says by email. “With Affirm’s growing penetration in the U.S. market for both online and in-store BNPL options, ACI sees Affirm as a strong partner to expand beyond just pure e-commerce-based BNPL offerings.”
BNPL volume, which has been exploding since the Covid-19 pandemic hit 20 months ago, shows no signs of slowing down. By 2024, BNPL volume is expected to total more than $1.2 trillion, according to Aite-Novarica Group.
“Consumers are demanding flexible payment options at checkout that help them shop in a way that works with their budget,” Geoff Kott, chief revenue officer for Affirm says in a prepared statement. “Merchants need to offer the right solutions to meet their customers’ needs and succeed in today’s market environment.”
In related news, a survey of consumer’s holiday shopping habits by Afterpay found that 45% of respondents plan to begin holiday shopping earlier than usual to avoid crowds and delivery delays due to bottlenecks in the supply chain. In addition, 39% of respondents expect to finish their holiday shopping by Thanksgiving.
The report reveals that one out of four consumers feel stressed or overwhelmed by spending during the holidays and that nearly 40% of Gen Zers plan to shop early to avoid overspending. To help manage the stress, 36% of respondents say they are setting a strict holiday shopping budget and 37% are setting spending limits with friends and family. In addition, 64% of respondents will be actively searching for deals and promotions to stretch their holiday shopping budgets.
“The holidays can be both emotionally and financially overwhelming,” Trae Bodge, Afterpay brand ambassador and smart shopping expert, says in a prepared statement. “To get ahead of the last-minute scramble and ensure a sense of financial wellness by year’s end, shoppers should begin to shop now and use budgeting tools.”
Afterpay, which is being acquired by Square Inc., also plans a six-week sweepstakes that that includes cash prizes of $500 in weekly drawings, leading to a $10,000 grand prize.
