Is affirm, after pay and bnpl a threat to stripe and PayPal?

Google
chinamanco

Go to company page Google

chinamanco
Nov 19, 2021 10 Comments

Seems like affirm is really taking off.

I'm just not clear on how the checkout works, but seems like on most merchant sites, you either enter the pay by credit card or you pay by affirm.

So essentially affirm cuts out the payment service providers. Is that right? Thata a big problem for stripe and PayPal no?

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TOP 10 Comments
  • Stripe
    fintech99

    Go to company page Stripe

    fintech99
    Affirm is more like an alternate payment method. You would not have 100% customer base using affirm. Stripe / Paypal still adds value by having all payment methods (including BNPL & local payment methods) integrated in their solution, which would easier for merchants to use.
    Nov 19, 2021 2
    • Google
      chinamanco

      Go to company page Google

      chinamanco
      OP
      Why would merchant want to pay stripe or PayPalayPal in addition to paying for affirm? They can just give 2 options, either use affirm or klarna or stripe with all the credit cards.
      Nov 19, 2021
    • New
      wWKO62

      New

      wWKO62
      Merchant would only really pay affirm or stripe if the user used that option. MDR aka merchant discount rate is not usually charged for just integrating. Thats why some checkout panels have what seems like 50 payment options
      Nov 19, 2021
  • Google
    chinamanco

    Go to company page Google

    chinamanco
    OP
    I wonder why stripe did not build a bnpl system of their own. Instead of building merchant lending which any bank already does.
    Nov 19, 2021 2
    • New
      GekC11

      New

      GekC11
      Perhaps an acquisition is in order? There’s lots of BNPLs out there and at least from a consumer perspective I’m not seeing much differentiation in product offering, it’s seemingly more about availability at the merchant level (ie can I checkout using Klarna, etc).

      I’d speculate that BNPLs are engaged in a price war and land grab that doesn’t yield much in terms of profitability (very hard to raise take rates).
      Nov 20, 2021
    • Google
      chinamanco

      Go to company page Google

      chinamanco
      OP
      Affirm has a card. It's a very sticky service, who wants to create multiple accounts to manage debt. Similar to PayPal.
      Nov 20, 2021
  • New
    ybx

    New

    ybx
    Did all my Thanksgiving shopping using Affirm. Quite a great experience. Some of them 0apr for 6 months. I'd rather rotate the money than to pay off monthly credit card
    Nov 20, 2021 0
  • Snap
    broknclock

    Go to company page Snap

    broknclock
    At least now people understand why affirm is going to be a big player in the payment system.
    Nov 19, 2021 0
  • Google
    chinamanco

    Go to company page Google

    chinamanco
    OP
    I think affirm will create their own apis and would prefer you integrate outside of stripe. Which is why stripe had a partnership with klarna.

    Ultimately what would the merchant pay stripe when affirm which is also a tech company offer their own integration stack.
    Nov 19, 2021 0