Walmart partners with Affirm to offer alternative financing option
Category: #retail  By Paroma Bhattacharya  Date: 2019-02-28
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Walmart partners with Affirm to offer alternative financing option

Walmart may have chosen to partner with Affirm specifically for its younger user base and as a means to reach millennial shoppers.

Affirm, the financial technology company that offers consumers a cash or credit alternative when making large purchase payments recently announced that it has entered a deal with Walmart. Under the agreement, 4,000 Walmart Supercenters across the U.S. will offer Affirm’s financing options and in the weeks to come the option will also be rolled out to Walmart.com.

Through the partnership, customers heading to Walmart will be able to check Affirm loan eligibility online and receive real time decision without any impact on their credit score. The credit score will only be impacted when they move forward to use the loan.

On approval the customers can opt for a three, six or twelve- month installments repayment term on purchases between $200 to $2,000. Customers will also be shown repayment amount with the interest displayed in dollars and not in interest rate. There would also be no other hidden fees.

Reportedly, Affirm has focused largely on e-commerce partnerships in the last few years to grow its business. At present it works with various online brands such as Tradesy, Wayfair, Casper, Betabrand, The RealReal, Shopify, Expedia, Reverb and Eventbrite.

Max Levchin, co-founder of PayPal, runs Affirm. Affirm is a business that offers consumers point-of-sale loans and installment plans. Through Affirm consumers who could not avail traditional credit due to bad credit or low credit scores, can make bigger purchases they could not otherwise afford. Affirm uses its own formula for risk calculation and approval of loans.

Critics are of the opinion that such businesses can harm the credit score system and entice consumers into overspending and often refer to such businesses as modern-day loan sharks brought about for millennials who are wary of carrying credit card debt. However Walmart may have chosen to partner with Affirm specifically for its younger user base and as a means to reach millennial shoppers.



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Paroma Bhattacharya

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Paroma Bhattacharya

Paroma currently works as a content developer for Algosonline, MSF and a series of alike platforms. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched ...

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