Fiserv has teamed up with Affirm to introduce flexible BNPL payment options for debit cardholders, enabling longer-term payment solutions within existing debit programs.
This partnership allows Fiserv’s bank and credit union clients in the US to offer consumers more flexible payment methods without having to develop new lending systems from scratch.
Integrating BNPL into Debit Products
Fiserv and Affirm began collaborating in 2022 with the goal of integrating Affirm’s services into Commerce Hub, which enables merchants to offer BNPL at checkout. Their ongoing partnership continues this initiative by focusing on providing new debit solutions that help financial institutions (FIs) remain competitive.
Key benefits include enhanced engagement and access to Affirm’s extensive network for payment choices. Both companies will handle the technical aspects, with Affirm’s platform managing real-time underwriting, loan origination, and funding. Fiserv will integrate this technology into its digital operations so that clients can seamlessly offer these products.
By incorporating BNPL within existing debit programs, issuers retain customer spending within their ecosystem, driving engagement and transaction growth for users. Debit cardholders can now use Affirm anywhere their cards are accepted to access flexible payment options without hidden fees. Affirm provides access to nearly 420,000 merchants offering custom financing terms like 0% APR.
Debit cardholders will be able to split eligible purchases into manageable installments directly from their bank’s mobile app, with a clear repayment plan and no hidden fees or late payments.
Strategic Alliance
Fiserv views its extended partnership with Affirm as providing scalable BNPL solutions through existing products. This collaboration aims to deepen customer loyalty and member relationships while increasing engagement. Affirm’s goal is to help financial institutions offer transparent pay-over-time options, ensuring customers have the control they need from banks and credit unions instead of seeking alternative solutions.
