SAN FRANCISCO—Buy now, pay later company Affirm said it teamed with a major provider of retail-branded gift cards to let shoppers purchase digital gift cards for the holiday season and pay for them in installments over as many as 12 months.
Affirm's partnership with privately held Blackhawk Network, one of the largest distributors of retailers' pre-paid gift cards, comes as Affirm and other buy now, pay later (BNPL) firms are soaring in popularity, Reuters reported.
U.S. shoppers spent $15.9 billion from October to December using BNPL, a 17.5% increase from last year, according to Adobe Analytics. Top categories for BNPL purchases are electronics, apparel, grocery and home furniture, Reuters noted.
The Most Popular Cards
Among the most popular gift cards being purchased via the new arrangement were from Nordstrom, REI and Bath & Body Works, Reuters said.
“Affirm shoppers can purchase gift cards for between $50 and $500, despite some of the retailers listing minimums of $25,” the report stated. “Shoppers can choose four-installment payment plans for zero interest or they can opt for monthly payments that include interest rates between 0% and 36% based on credit and eligibility checks.”
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