Affirm and Adyen Expand Longstanding Partnership to the UK
Adyen, the globally renowned financial technology platform trusted by many of the world’s leading businesses, has officially announced the expansion of its longstanding partnership with Affirm Holdings, Inc. (NASDAQ: AFRM), a leading payment network that empowers consumers and drives merchant growth. This new phase of their collaboration introduces Affirm’s innovative payment solutions to the United Kingdom, marking a significant milestone for both companies and the UK’s evolving payment ecosystem.
The extended partnership allows Adyen’s UK-based merchants to seamlessly integrate Affirm’s flexible payment solutions into their checkout processes, both online and in physical stores. This integration enables merchants to offer their customers access to a variety of pay-over-time options, designed to meet diverse consumer needs and purchasing preferences.
Affirm distinguishes itself in the payment solutions market by providing consumers with transparent and flexible installment plans. These include both interest-free and interest-bearing options, giving approved customers the ability to choose a personalized payment plan that aligns with their financial situation. Importantly, Affirm’s model is rooted in consumer protection—users are never subjected to hidden fees or late charges, creating a more trustworthy and predictable payment experience.
Meeting Evolving Consumer Expectations
Speaking about the expansion, Nicole Olbe, Adyen’s Managing Director for the UK, highlighted the importance of delivering innovative and seamless payment solutions to meet growing consumer expectations. “Adyen customers all over the globe are demanding best-in-class payment experiences to boost business and drive customer engagement, which is why we are expanding our partnership with Affirm into the UK,” Olbe stated.
She further emphasized that the partnership has already demonstrated measurable success in North America. “We’ve seen how Affirm’s consumer-first payment options accelerate growth for our U.S. and Canadian merchants and help them meet customers’ individual needs at checkout. We’re excited to unlock greater opportunities for UK merchants, and greater flexibility for consumers, together with Affirm.”
By leveraging Affirm’s offerings, merchants in the UK can now cater to a wider demographic, including those who prefer or require the flexibility to spread payments over time. This aligns with broader retail trends in the UK, where consumers increasingly seek transparent financing solutions amidst rising living costs and changing financial behaviors.
Empowering Merchants and Consumers Alike
Ruth Spratt, Vice President and UK Country Manager at Affirm, echoed similar sentiments regarding the benefits of the partnership expansion. “Businesses across many sectors in the UK rely on Adyen to drive growth; now they can benefit by offering Affirm’s more flexible, transparent, and long-term pay-over-time options to their customers,” she said.
Spratt elaborated on Affirm’s consumer-first approach, emphasizing how the company’s payment solutions are crafted with clarity and responsibility at their core. “By deepening our partnership with Adyen, we look forward to helping more merchants grow their business and more consumers pay over time on a schedule that works best for them, and always without any late or hidden fees.”
This approach is particularly crucial in the current financial climate, as UK consumers increasingly prioritize financial control and transparency. By offering flexible installment options, merchants can tap into a broader customer base, reduce cart abandonment rates, and foster long-term customer loyalty.
Building on a Strong Foundation of Success
The collaboration between Adyen and Affirm dates back to November 2020, when they first joined forces to provide Affirm’s payment solutions to eligible Adyen merchants in the United States. Initially, the integration allowed merchants to offer Affirm’s pay-over-time options through their websites, mobile applications, and physical stores using Adyen’s point-of-sale terminals.
Since then, the partnership has experienced remarkable growth. According to data shared by the companies, the average annual transaction volume processed through Affirm via Adyen increased by more than seven times from 2021 to 2023. This exponential growth is a testament to the demand for flexible payment options among consumers and the value such solutions bring to merchants seeking to enhance customer satisfaction and retention.
The proven success of the partnership in North America laid the groundwork for its recent expansion. In December 2024, Adyen and Affirm announced another key development: the extension of Affirm’s pay-over-time solutions to Adyen for Platforms customers in the U.S. and Canada. This allowed businesses leveraging Adyen’s platform infrastructure to offer Affirm’s installment payment options to their end customers more easily. Additionally, Adyen merchants in Canada gained access to a broader array of Affirm’s offerings, further strengthening the payment experience for Canadian consumers.
Affirm’s Official Launch in the UK
The announcement of the UK expansion follows another significant milestone for Affirm—the company’s official launch in the UK market in November 2024. Affirm U.K. Limited operates as an authorized and regulated entity under the Financial Conduct Authority (FCA), ensuring that its operations and financial practices comply with the stringent regulatory standards set forth by UK financial authorities.
Affirm’s entry into the UK market represents a strategic move, as it positions itself to capture the growing demand for alternative financing solutions among British consumers. With the partnership expansion, Affirm now benefits from Adyen’s strong presence and extensive merchant network in the UK, facilitating a smoother rollout and adoption of its services.
A Strategic Alignment of Values and Vision
The collaboration between Adyen and Affirm is built on a shared commitment to innovation, customer-centricity, and ethical financial practices. Both companies emphasize the importance of transparency, simplicity, and responsible financial products, aligning well with modern consumer expectations and regulatory trends.
For Adyen, known for its one-stop-shop approach to global payments, integrating Affirm’s flexible payment solutions further enhances its already robust suite of services. Merchants utilizing Adyen can now offer customers a wider variety of payment options, giving them the tools they need to adapt to shifting market conditions and consumer preferences.
For Affirm, partnering with a trusted global payments platform like Adyen not only amplifies its reach but also strengthens its position as a leading player in the global buy-now, pay-later (BNPL) space. This collaboration enables Affirm to focus on its mission to deliver financial products that improve the lives of consumers, while also providing merchants with the means to fuel growth and customer loyalty.
