Buy now, pay later company Affirm Holdings (AFRM) is expanding to the United Kingdom in its
first foray overseas.
Founded in 2012, Affirm is a financial technology company that offers flexible payment plans that allow consumers to purchase items in installments over time. Its service is popular with young adults and teens.
Affirm said in a statement that its U.K. offering will include monthly payment options for British consumers. Interest on its plans will be fixed and calculated on the original principal amount.
The company’s expansion to the U.K. marks the first time it is operating outside of the U.S. and Canada.
Affirm has partnered with companies such as Amazon (AMZN) and Walmart (WMT) to offer its buy now, pay later services to more than 50 million users.
In all, the company says that it has deals in place with more than 300,000 merchants. Affirm said it expects to add several British brands to its merchant partners in coming months.
The U.K. is a competitive marketplace for both financial technology companies and in the buy now, pay later space.
In the U.K., Affirm faces competition from companies such as Klarna, Block (SQ), Zilch and PayPal (PYPL).
Affirm’s launch in the U.K. also comes as the British government is debating whether to regulate the buy now, pay later industry.
Affirm said it secured authorization from Britain’s Financial Conduct Authority, the country’s financial services regulator, to operate in the country after months of discussions.
The stock of Affirm has declined 7% this year to trade at $43.22 U.S. per share. Since going public in 2021, the company’s share price has declined 63%.
