Affirm, a provider of Buy Now, Pay Later (BNPL) services, has expanded the scope of its cooperation with Priceline travel company which operates in the virtual space.
As part of the mentioned interaction between the two firms, Affirm is the party providing BNPL services for Priceline Partner Solutions, a B2B business. The relevant information is contained in a press release that was published by Affirm last Monday, November 18.
In the practical plane, the concrete results of the cooperation between the two companies will take the form of expression, which is that brands that are partners of Priceline will be able to start offering travelers the opportunity to schedule trips and pay over time through their own websites. In this context, it is worth noting separately that the online travel company is in partnership with, among other things, hotels, airlines, and car rental services. Information about new opportunities for Priceline partners is contained in a press release published by Affirm.
Affirm Senior Vice President of Revenue Pat Suh said that travelers are increasingly eager for flexible and transparent payment methods. She also noted separately that the 25% increase in sales of travel and tickets recorded by the mentioned company last quarter is evidence of the extent of the corresponding demand.
Besides, Pat Suh stated that for more than five years, Affirm has been helping Priceline to deliver to its customers the best experience. She also noted that the company is excited to bring that same value to the travel brands using Priceline Partner Solutions.
Priceline Partner Solutions partner brands can integrate Affirm into their checkout flow by working with their account team. Customers will then use the functional offer from Affirm as a way to pay for orders worth at least $50.
The results of special industry research indicate that consumers have been increasingly using BNPL services to fund their vacations recently. Against this background, Affirm and many of its competitors publish information about the upward dynamic of travel-related spending. The scaling of BNPL services is also observed in the context of the current practice of forming partnerships in the business environment. In this case, it should be mentioned that in April Klarna expanded the scope of its collaboration with Expedia. The purpose of the relevant decision was to provide BNPL travel payments to consumers in the United States.
Affirm in the current month published a report on the results of its activities in the last fiscal quarter. The relevant data indicate that the company accounts for a third of the volume and more than half of the revenue in the US BNPL space. These indicators reflect the firm’s strong position in the mentioned space.
In the last fiscal quarter, Affirm recorded a double-digit increase in the number of active customers and merchants. At the same time, the number of transactions per active consumer rose by 25% year-on-year.
The company’s quarterly report indicates that the gross merchandise volume amounted to $7.6 billion. This indicator increased by 35% year-on-year. Also, the management of Affirm separately noted that the firm was able to significantly outpace the overall volume of e-commerce.
Currently, the popularity of BNPL as the preferred payment method is growing in the United States. The results of special industry research indicate that 16% of US consumers abandon traditional payment methods, opting for solutions with later payment. The corresponding tendency is especially noticeable among millennials. In the United States, 39% of representatives of this age group used BNPL services last year.
There are also other examples of the growing popularity of functional solutions in the mentioned category. In this context, attention should be paid to a 28% year-over-year increase in gross merchandise volume for BNPL purchases through a single service, indicating its effectiveness in driving sales. Subscription merchants who adopt the mentioned services can use it to capture a larger market share. As part of the implementation of the relevant practice, casual customers gradually become loyal subscribers.
As we have reported earlier, Affirm Rolls Out BNPL Services in UK.
