SAN FRANCISCO—Buy now, pay later provider Affirm Holdings has applied for a bank charter in Nevada, marking its latest move to expand deeper into traditional banking services, Payments Dive reported.
The company said it has submitted applications to the Nevada Financial Institutions Division and the Federal Deposit Insurance Corporation to establish Affirm Bank as a Nevada-chartered industrial loan company, though it offered limited details about the planned entity.
Affirm said launching a bank could create opportunities to roll out new financial products and services over time, but declined to elaborate on specific offerings or the expected timeline for regulatory approval, Payments Dive noted. A company spokesperson did not provide additional information on what products the bank might offer or when it could begin operations, Payments Dive said.
“A banking subsidiary would strengthen and diversify Affirm’s platform, and help us bring honest financial products to more people,” Founder and CEO Max Levchin said in a statement.
Affirm already offers several bank-like services, including a debit card, and is best known for its pay-in-four installment loans as well as longer-term, interest-bearing financing. To support its current lending activities, the fintech partners with banks such as Cross River Bank in New Jersey and Celtic Bank in Utah.
Affirm’s push reflects a broader trend of fintech and buy now, pay later companies moving into bank-adjacent territory, Payments Dive reported. Rival Klarna has expanded into deposit accounts and debit cards, branding itself as a “global digital bank,” while PayPal applied for a bank charter in Utah in December. Sezzle has also explored a potential charter, underscoring growing competition as fintech firms seek greater control over funding, products, and regulatory frameworks, Payments Dive added.