By Hannah Lang
(Reuters) – Exciting news from the world of fintech lending! Affirm, the popular “buy now, pay later” (BNPL) service, is making a bold move into a new market: elective medical procedures. This expansion marks a significant shift for Affirm beyond its traditional e-commerce focus, opening up new opportunities for the company and its users.
With the increasing demand for financing in the medical sector, Affirm has seen tremendous growth in the number of elective medical merchants on its network. The company now partners with over 130 elective medical providers, offering financing options for cosmetic treatments, dental services, medical devices, and even veterinary procedures.
Affirm’s senior vice president of revenue, Pat Suh, shared in an interview, “A lot of these procedures come with a price tag of $2,000 or more, making them a perfect fit for our installment product.”
While this move into elective medical financing has been quietly in the works for a while, it represents a significant step for Affirm as the first major BNPL provider to enter this market in the U.S.
Affirm’s installment product offers competitive rates, ranging from 0% to 36%, based on the purchase price and the borrower’s credit profile. This strategic expansion underscores the company’s commitment to meeting the evolving needs of consumers in diverse sectors beyond e-commerce.
The global market for cosmetic procedures, dental services, and veterinary care presents a lucrative opportunity for BNPL providers like Affirm. With the rise in consumer spending on services and healthcare, the company is well-positioned to capitalize on this growing trend.
While concerns about consumer debt and over-indebtedness linger, Affirm assures customers of its responsible lending practices. The company emphasizes transparency, upfront disclosure of charges, and tailored credit offerings based on each customer’s financial position. Affirm’s dedication to financial well-being sets it apart in the evolving landscape of BNPL lending.
As BNPL continues to reshape the financial services industry, Affirm’s foray into elective medical financing signals a dynamic shift in the company’s growth strategy. By embracing new markets and expanding its product offerings, Affirm is paving the way for a more inclusive and accessible financial future.