Affirm is making a significant play in the the debit card market through a new BNPL partnership with FIS.
Affirm expands BNPL to debit cards
This collaboration will allow banks that use FIS’s debit processing services to integrate Affirm’s BNPL options directly into their existing debit card programs, providing millions of consumers with a flexible alternative to traditional credit.
Since its founding by PayPal co-founder Max Levchin, Affirm has been at the forefront of reshaping how consumers access credit.
While BNPL services have historically been tied to credit cards and standalone financing, Affirm’s expansion into debit represents a major shift in the payments landscape.
With this new initiative, consumers can access biweekly or monthly instalment plans directly through their debit cards, eliminating the need for new plastic or separate financing applications.
The Affirm Card, originally launched in 2021, already enables users to pay for purchases over time, with funds automatically deducted from their linked checking accounts.
By integrating with FIS, Affirm is now extending this capability to a broader base of financial institutions, allowing banks to offer BNPL features within their existing debit programs.
A Win for Consumers and Banks
According to the Federal Reserve Bank of Atlanta, there are approximately 230 million debit card users in the US.
The partnership between Affirm and FIS aims to provide these consumers with enhanced spending flexibility, particularly at a time when traditional credit card debt is rising.
Jim Johnson, co-president of banking solutions at FIS, highlighted the demand for modern payment solutions, stating, “Consumers today are looking for innovative and user-friendly experiences that give them flexibility and control over their money.”
Through this collaboration, banks leveraging FIS’s infrastructure will be able to offer customised versions of the Affirm Card and extend pay-over-time options through their digital banking and mobile app platforms.
Affirm’s Growing Market Influence
Affirm’s network spans over 335,000 merchants, including travel booking platforms, electronics retailers and concert ticket providers.
By enabling BNPL for debit card users, the company is positioning itself as a leading alternative to credit cards, offering competitive financing options such as 0% APR, longer payment terms and higher credit limits funded by merchants.
This development follows Affirm’s recent success in expanding its reach.
The company’s active user base grew 23% year-over-year to 21 million, with its Affirm Card boasting 1.7 million active users – a 136% increase from the previous year.
Moreover, the firm reported a surprise profit in its latest earnings report, driving its stock up by 22%.
The Future of Debit-Based BNPL
With this integration, Affirm is effectively breaking new ground in the BNPL industry, allowing consumers the flexibility of instalment payments without relying on credit cards.
For banks, this represents an opportunity to enhance their debit offerings and attract customers looking for innovative, budget-friendly payment solutions.
As the financial landscape continues to evolve, and the regulatory framework continually playing catch up, whether this model will redefine the debit card experience remains to be seen, but one thing is clear: the lines between credit and debit are becoming increasingly blurred, offering more choice and convenience for modern consumers.
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