Illustration: Shoshana Gordon/Axios
Affirm is expanding its partnership with Walmart to offer its buy now, pay later option at the retailer's self-checkout kiosks.
Why it matters: The BNPL option, which will be available at thousands of Walmart stores, could offer a major boost to Affirm and its holiday season adoption by consumers.
How it works: Shoppers can apply for a line of credit from Affirm to buy items in Walmart stores.
- Affirm underwrites the proposed transaction and, if it's approved, will present several financing options tailored to the customer.
- After a plan is selected, customers will receive a barcode to scan at the Walmart self-service kiosk to pay.
Context: Affirm has been a Walmart partner since 2019, when the retailer began offering pay-over-time services on walmart.com.
- The BNPL provider has similar arrangements for in-store payments at retailers including Casper, Gucci, Michaels, Staples and Dick's Sporting Goods.
State of play: Walmart is by far the largest of those partnerships, with BNPL available in more than 4,500 stores.
- According to Affirm SVP of revenue Pat Suh, Walmart and Affirm will promote the payment option through a joint marketing campaign that includes in-store signage and email marketing to their customers.
Between the lines: The campaign is going live at the tail end of the holiday season, but Affirm could see some benefit from last-minute shoppers' opting for BNPL instead of using debit or credit cards.
- Buy now, pay later adoption has seen a big boost this holiday season, with use increasing 42.5% year over year on Cyber Monday, according to Adobe.
The intrigue: Making BNPL available in-store is also a part of Affirm's push to persuade consumers to adopt BNPL for everyday purchases.
- In addition to its in-store initiatives, the company has invested heavily in deploying its Affirm card to capture more everyday spending.
- "It's about enhancing that strategy around ubiquity and providing these kinds of simple, transparent financing options to the consumer," Suh says.
Of note: Affirm shares soared more than 13% Tuesday morning.
