Affirm, the U.S.-based buy now, pay later (BNPL) company, has officially entered the U.K. market as of Monday, marking its first expansion beyond North America. Founded in 2012 by PayPal co-founder Max Levchin, Affirm has grown rapidly in the U.S., where it offers consumers flexible installment options for various purchases. With a focus on transparency, the company is known for underwriting every transaction individually and not charging any late fees, positioning itself as a consumer-friendly option in the competitive BNPL market.
Affirm’s entry into the U.K. comes as the British government explores regulatory oversight for the growing BNPL sector. The company’s U.K. services, authorized by the Financial Conduct Authority (FCA), will feature both interest-free and interest-bearing monthly installment plans. Importantly, any interest charged will be calculated on the original loan principal, ensuring no increase or compounding over time—a unique feature aimed at consumer transparency and control.
The U.K. launch is significant as it represents Affirm’s first push into international markets, where it will compete with well-established rivals like Klarna, Block’s Clearpay, Zilch, and PayPal’s BNPL services. Affirm’s CEO Max Levchin explained the strategic decision to enter the U.K., highlighting strong demand from British merchants. According to Levchin, “It’s a huge market, and being English-speaking makes it a great starting point. We received an overwhelming response from local merchants, which really solidified our decision.”
Affirm boasts a considerable global footprint, with over 50 million users and more than 300,000 active merchants, including major brands like Amazon, Shopify, and Walmart. In the U.K., Affirm’s launch partners include flight booking website Alternative Airlines and the payments processing company Fexco. Affirm plans to onboard additional U.K. brands in the coming months, building a robust merchant network as it competes against established players.
Levchin believes Affirm stands out in the BNPL landscape by offering longer-term payment plans than many competitors. While other BNPL providers typically limit payment schedules to a few months, Affirm offers financing terms that can extend up to 36 months, giving consumers greater flexibility for larger purchases. “Many of the existing BNPL options provide only short-term financing,” Levchin noted. “Our goal is to offer a variety of repayment terms so that customers can choose what best fits their needs, whether it’s a few weeks or up to three years.”
The U.K. government’s proposed BNPL regulations are also top of mind for Affirm. The government is considering measures aimed at consumer protection, including requiring BNPL providers to give clear, accessible information about payment terms, ensuring customers are not overextending financially, and introducing consumer rights for when problems arise with BNPL transactions. Levchin welcomed the prospect of thoughtful regulation, emphasizing Affirm’s commitment to transparency and ethical practices. “We support regulations that are designed to protect consumers without adding unnecessary complexity. We’re experts at automating backend processes, so we’re well-equipped to meet these regulatory expectations without burdening our customers.”
Affirm’s entry into the U.K. BNPL market arrives at a time when financial technology competition is intensifying. The BNPL model has become popular, especially among younger consumers who are looking for alternative payment options without accruing credit card debt. However, with its rise in popularity, BNPL has attracted increased regulatory attention due to concerns that some consumers may be taking on debt they cannot afford.
In response to potential consumer pitfalls, Affirm has positioned itself as a responsible player, noting its “pristine reputation” in the industry. Levchin said the company has never charged late fees or deferred interest and prides itself on being “thoughtfully pro-consumer.” This approach, Levchin added, has helped earn Affirm the trust of both consumers and merchants. “Our reputation is built on transparency and consumer-friendly practices, which we believe will resonate strongly with U.K. customers and regulators alike,” he said.
To gain FCA approval, Affirm engaged in a rigorous authorization process, aligning its practices with the regulator’s standards. Levchin expressed confidence that Affirm’s reputation for consumer-first policies will help it succeed in the U.K. market. “We’ve maintained a strong track record in the U.S. by prioritizing transparent, straightforward services that consumers can rely on. We’re bringing that same approach to the U.K., where we think it will resonate as the BNPL space becomes more regulated.”
The U.K. launch is just the beginning of Affirm’s international ambitions. While Levchin acknowledged that expansion into non-English-speaking markets will require additional work, he emphasized that Affirm is already considering broader growth. “Our goal is to continue expanding globally, though it’s a careful process. For now, we’re excited to begin in the U.K., but we’ll explore other markets in the near future,” he added.
Affirm’s entry into the U.K. BNPL market signals a new chapter for the company and presents a fresh option for consumers seeking flexible, transparent payment methods. As regulatory scrutiny of BNPL intensifies worldwide, Affirm aims to set itself apart through a reputation for ethical lending practices and consumer-centered options.
