SAN FRANCISCO--(BUSINESS WIRE)--Merchants across the country are offering a new payment product in time for the holidays that pre-approves shoppers for a specific amount, and then issues them a one-time use Virtual Card they present at checkout. Shoppers approved for an Affirm Virtual Card can buy the items they love and pay for them over time in fixed, monthly installments in a way that best fits their budgets.
Women’s fashion icon BCBG Max Azria Group, LLC is leading the first wave of merchants offering the Affirm Virtual Card before Black Friday. Introduced less than three weeks ago by Affirm Inc., the financial technology company started by PayPal Co-Founder Max Levchin, the Affirm Virtual Card provides shoppers with cash flow flexibility and relief, particularly needed during high-spend shopping periods. And unlike most payment methods, Affirm clearly spells out the total interest the shopper will pay over the life of their loan and the amount of their monthly payment so they know exactly what they will pay before they confirm their purchase. This transparency helps restore financial control to consumers.
“Affirm’s new Virtual Card is the best way to buy for lots of people - especially Millennials,” said Levchin. "It’s honest. It’s transparent. It’s what this generation of shoppers wants and expects.”
Said Michelle Magallon, SVP of Digital Commerce & Omnichannel for BCBG Max Azria Group, LLC: “We believe the Affirm Virtual Card is a unique micro finance offering for the US market that will provide the BCBG customer an alternative to traditional forms of payment.”
Affirm lets shoppers pay for purchases across multiple months with transparent, simple interest loans, differentiating it from traditional credit products that typically charge compounding interest, fees of all kinds, and come with predatory promotional offers.
For example, on the purchase of a $400 cocktail dress at 10 percent APR, when paid in 12 monthly payments of $35.16 using Affirm, the total interest to be paid over the life of the loan comes out to about $22. The same purchase at 30 percent APR, when paid in three monthly payments of $140 using Affirm, has a total interest cost of about $20. These interest fees and monthly payment amounts are clearly disclosed to shoppers before they transact, so they can make an educated decision whether these costs fit into their budgets.
Applying for an Affirm loan is easy and fast. Most customers need only provide top-of-mind facts such as their name, mobile phone number, birthday, and last four digits of their social security number. Using these details, Affirm accesses and evaluates thousands of pieces of data about applicants outside of just traditional FICO scores to more accurately determine their ability to repay. An approval decision is rendered in seconds. Payment is made to the merchant within one to three business days on behalf of approved customers, placing all the repayment and fraud risk on Affirm.
Retailers offering Affirm payment plans report that average order values increase by up to 80 percent, and conversion rates jump by more than 20 percent. Over 36 percent of customers who use Affirm come back to make a second purchase using Affirm and the second purchases are on average 82 percent larger than the first.
About BCBG Max Azria Group, LLC
BCBG Max Azria Group began with a single idea – to create a beautiful dress. Founded in 1989 by Designer, Chairman and Chief Executive Officer Max Azria, BCBG was named for the French phrase bon chic, bon genre, a Parisian slang meaning “good style, good attitude.” The brand embodies a true combination of European sophistication and American spirit. The BCBG Max Azria and BCBG Max Azria Runway labels are sold in 700 freestanding boutiques and shop-in-shops at top department stores across the globe.
About Affirm
Affirm is a new financial technology company empowering shoppers to buy the items they love and pay for them over time in a way that best matches their monthly budgets. Started by PayPal Co-Founder Max Levchin, Affirm’s data-driven approach looks beyond a standard credit score to reach broader consumer populations. Affirm’s transparent payment solutions empower shoppers to buy now and pay later in monthly installments and at reasonable interest rates. These features help to improve sales conversions, boost basket sizes and increase customer happiness. To start working with Affirm, go to affirm.com.
