Affirm, the U.S.-based "buy now, pay later" (BNPL) company, has officially launched in the U.K., marking its first venture outside North America. This expansion comes as the U.K. considers stricter regulations for BNPL services to align them with other consumer credit products. However, these regulations are not expected until 2026, giving Affirm time to build its presence and consumer trust.
Founded in 2012 by PayPal co-founder Max Levchin, Affirm has secured partnerships with major U.S. brands like Amazon, Walmart, Shopify, and Apple. In the U.K., it starts with partners such as Alternative Airlines and Fexco, with more expected to follow.
Affirm distinguishes itself by offering fixed, non-compounding interest and refraining from late fees or hidden charges—key differentiators in a competitive market where rivals like Klarna have faced criticism for encouraging debt and have introduced late fees. Affirm aims to attract consumers and comply with evolving regulatory expectations while positioning itself favorably compared to other BNPL firms.
Despite past financial volatility, Affirm’s market capitalization has recovered to over $13 billion in 2024, supported by strong revenue growth and a significant reduction in losses. CEO Max Levchin has projected profitability for 2025, signaling a positive outlook as Affirm strengthens its international footprint.
