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Affirm Closes $500M Securitization Of Its POS Installment Loans

Payment network Affirm has closed a $500 million securitization of its point-of-sale (POS) installment loans, which will help it boost its growth in the future, according to a press release.

“Our capital strategy continues to be an important point of competitive differentiation for Affirm as our ABS program builds upon its already strong execution,” said Affirm Chief Financial Officer Michael Linford in the release. “Our 2021-B securitization was our most efficient execution to date and provides us with even greater flexibility to support our growth in 2021 and beyond. We appreciate the exceptionally strong investor demand for this offering and the confidence in our platform from our large, diversified group of institutional capital partners.”

Before the issuance, the company had seen an “active and successful period,” according to the release. Affirm had had two prior securitizations in 2021, and this new one marks the sixth since it launched its program in 2020.

The offering came with several classes of fixed-rate notes placed with different institutional investors, the release stated.

In related news, Apple is partnering with Affirm’s PayBright to introduce a new buy now, pay later (BNPL) service for Apple products in Canada, PYMNTS reported. Users can buy iPhone, Mac and iPad products and pay for them over periods of 12 to 24 months.

Read more: Apple And Affirm Pair Up As The Buy Now, Pay Later Race Goes Global

BNPL has become a popular force over the past year. The BNPL race has seen big names such as Visa, PayPal, Citi adding new installment products in markets like Canada and Australia, which are similar markets in that they have a high amount of retail markets and a consumer base prepared to use the products. In addition, there are also comparatively few banks competing in the space.

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