Stride Bank will become a new card issuing partner for the Affirm Card, supporting the growing demand for this debit card that enables consumers to pay in full or convert eligible purchases into pay-over-time loans in the Affirm app.
The collaboration enables Stride Bank to continue expanding its payments programs with FinTech companies and helps Affirm extend its reach to more consumers and merchants, the companies said in a Tuesday (April 1) press release.
The Affirm Card had 1.7 million active cardholders as of Dec. 31, while Affirm’s network includes 21 million active consumers and 330,000 integrated merchants, according to the release. The card can be used in-store, online and anywhere Visa is accepted.
Stride Bank provides a full suite of traditional financial products and services in addition to being a leading card issuer, per the release.
“This relationship aligns perfectly with our desire to provide innovative and accessible financial solutions,” Jimmy Stallings, president of Stride Bank’s Payments Group, said in the release.
Vishal Kapoor, senior vice president of product at Affirm, said in the release: “Adding Stride Bank as a card issuing partner will help enable us to continue scaling Affirm Card while further strengthening and diversifying our platform so that we can improve millions more lives.”
Fixed-term plans like Affirm’s have a tailwind in the fact that young consumers are eschewing credit cards and are skeptical of taking on long-term, and possibly unmanageable debt, Affirm CEO Max Levchin told PYMNTS CEO Karen Webster in an interview posted March 27.
“We’ll do $35 billion this fiscal year, and the 20-plus million active users speaks for itself,” Levchin said.
Merchants benefit from increased conversion rates as cart abandonment rates plummet 28% and cart purchases increase 60% (as measured in dollars) when Affirm’s pay later options are in the mix, Levchin added.
On March 19, Affirm said it would begin furnishing information about all of its payment plans to credit reporting agency Experian on April 1. The company said that by doing so, it would help consumers build their credit histories and enable both consumers and merchants to make more informed decisions.
