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Some renters using the Esusu Inc. platform to build their credit may have a new option to break their monthly rent payments into smaller portions via a partnership Esusu formed with Affirm Holdings Inc.
Affirm, a longstanding buy now, pay later and installment loan provider, is available to building owners whose residents subscribe to the Esusu Plus or Premium plans, which have a monthly $35 and $50 fee, respectively. Esusu is based in New York City.
Participating tenants can choose to pay with Affirm and split their rent payments. One Esusu example shows a repayment schedule to Affirm of $850 every two weeks for two payments over four weeks.
CNBC reported the Affirm-Esusu BNPL rent option is in a pilot phase and they have not yet released a launch date.
In other Affirm news, the San Francisco-based company is applying for an industrial loan company charter in Nevada, which would enable it to establish Affirm Bank.
The subsidiary would allow Affirm to grow while it owned an FDIC-insured institution. Many financial-services companies have done this, with one of the latest examples being PayPal Holdings Inc. And Square, now Block Inc., received its ILC approval in 2020.
If approved, Affirm Bank would be a subsidiary of Affirm and could spur new products and services over time, Affirm says. “This is about expanding what we can do for consumers and merchants, and building for the long term,” Max Levchin, Affirm founder and chief executive, says in a statement.
Affirm Bank would be headed by John Marion as president. His career includes positions at JPMorgan Chase, Hatch Bank, and other banks, including the role of president.
