An ePublication from Ecommerce Partners

Payment Solution Comparison: Afterpay and Affirm

By | November 10, 2019 9:09 am

Both Affirm and Afterpay offer alternative financing options to consumers who wish to make a purchase in installments. At the time of purchase, shoppers choose them as installment options, and then apply for financing. Affirm is recognized as an industry leader with an innovative approach to making credit approval decisions using both a soft check of the borrower’s credit score and factors such as machine learning and the borrower’s social media activity to return an approval within seconds. For that reason, it is able to offer a higher approval rate than industry averages, i.e, 67% versus ~50%. Affirm only affects the borrower’s credit if payments are late, in which case it charges late fees of 1.5% and reports the delinquency to credit bureaus. It charges interest rates between 10% and 30% depending on its agreement with merchants.

Afterpay concentrates on the millennial shopper segment and is typically used for lower order values than other installment providers. While Affirm is available within the U.S only, Afterpay can also be used in Australia, Belgium, Netherlands, New Zealand, and the U.K. After the shopper applies and is approved for credit, a purchase is broken into four equal installments payable every two weeks. Instead of interest, Afterpay charges an $8.00 initial fee and an $8.00 fee for each payment.

Affirm and Afterpay deliver comparable improvements to sales conversion, in the 20% range. As an offering that targets lower order values to begin with, Afterpay provides a lower boost to Average Order Value (20% – 30% compared to 87%). In addition, Affirm offers greater flexibility to merchants in customizing rates, number of installments, and other options. Because both ask the shopper to apply for additional credit, they do not allow shoppers to accumulate credit card points or other premiums; they both potentially increase the risk that shoppers will overextend their credit.

Posted in:

Comments are closed here.

About Us

About Ecommerce Partners:

Founded in 1998, ECommerce Partners is a full-service, ecommerce and interactive agency headquartered in New York City. Best known for our unique process methodology, we combine Internet expertise, creative talent, and business know-how to help clients across a variety of industries achieve rapid, measurable online marketing results.

True to our motto, "We build businesses, not just websites," we provide large and mid-sized companies with a full range of Internet marketing, website design and ecommerce solutions geared to maximize online revenues.



Our Offices

New York USA
Ecommerce Partners
59 Franklin Street
New York, NY
Phone 212 334-3390
Fax 503 218-5585
Florida USA
Ecommerce Partners
6700 Pines Blvd.
Pembroke Pines, FL
Phone 866 431-6669
Fax 503 218-5585
California USA
Ecommerce Partners
123 California Ave
Santa Monica, CA
Phone 866 431-6669
Germany Germany
Ecommerce Partners
Passauer St4
Phone 49-30-2361-9794
Australia Australia
Ecommerce Partners
31 Mary Street
St. Kilda West
Victoria 3182
Phone 61-3-9505-9988