The events of 2020 have caused major shifts in our lives, including how we shop. Curbside pickup and online grocery shopping have become common, and split payments, also known as buy now, pay later (BNPL), has gained traction among consumers as a more convenient way to buy everyday items.

To make it even easier for people to enjoy the flexibility and control that BNPL options can offer, we’ve made some upgrades to our split pay solution. Our product now gives customers a way to pay at their own pace with no impact on their credit scores and no need to share the last 4 digits of their Social Security number. These changes cut friction at checkout and can encourage more shoppers to check out at your site or store.

This split pay upgrade is our latest innovation in building financial products that are transparent and easy to use—benefitting both sides in our rapidly growing network of shoppers and merchants. 

What shoppers can expect from splitting payments

Our split pay product offers a simpler experience, and shoppers can make 4 interest-free payments for their purchases. This is available for orders starting at $50. Customers also have the option to use their debit or credit card for repayment.

To make a purchase, new Affirm customers enter 4 pieces of info (name, phone number, birthdate, and email address), and get an approval decision within seconds. Existing Affirm customers only have to enter their phone number, as their previous payment information is stored for convenience. It only takes 3 clicks for customers to complete their order!

As with all Affirm products, there are no late or hidden fees. There are no interest charges for purchases made with this split pay feature, and no furnishing to credit bureaus.

How the split pay upgrade can benefit your business

Besides ease of use that your customers will love, the benefits to your business start almost immediately after integration. These include:

• Increased application and take-up rates. The removal of SSN takes away one small step in the process of applying to buy with Affirm, but it’s a big booster for those customers who might not otherwise apply. 

• Stronger upside for repeat purchases. The every-other-week payment plan means customers pay off their purchase in as little as 6 weeks—much faster than with a monthly payment plan. This means customers will be ready to make their next purchases sooner.

• New opportunity with lower cart sizes. The biweekly payments are a great option for smaller purchases, giving a new level of flexibility for shoppers who may prefer this way to stay within their budgets. The timing also aligns with many people’s paychecks, which can make it easier to stay on track with the payment schedule.

• Greater flexibility for all price ranges. You can combine split pay with installments to accommodate a wide range of price points, giving customers payment term options from 6 weeks to 36 months. 

• Another way to build trust. Affirm’s transparency means customers know exactly what they will pay, with no surprises. This builds trust that can extend to your brand: In a recent survey, we found 60% of customers had more favorable views of brands that offer flexible payments.

“This latest product is another step towards becoming as ubiquitous as credit cards—Affirm is now an even more attractive payment option for everyday wants and needs,” said Max Levchin, CEO of Affirm. “We can also now better support merchants who offer smaller ticket items and bring their customers a more transparent, flexible way to pay.”

The symmetry of our split pay upgrade makes it easy to remember: 4 basic pieces of information, followed by 4 interest-free payments. The product is also easy for your customers to use, which can increase conversion and repeat buying rates at your store. I’d say that’s one of the brighter developments for the end of 2020!

Learn more about how Affirm can increase sales for your business.