Affirm Completes $ 500 Million Securitization | PYMNTS.com
Payment network Affirm has closed a $ 500 million securitization of its point-of-sale (POS) installment loans, which will help it drive future growth, according to a press release.
“Our capital strategy continues to be an important competitive differentiator for Affirm as our ABS program builds on its already strong execution,” Afffirm CFO Michael Linford said in the statement. “Our 2021-B securitization has been our most efficient execution to date and gives us even greater flexibility to support our growth in 2021 and beyond. We appreciate the exceptionally strong investor demand for this offering and the confidence in our platform from our large and diverse group of institutional capital partners. “
Prior to the show, the company had experienced an “active and successful period,” the statement said. Affirm had already had two securitizations in 2021, and this news is the sixth since the launch of its program in 2020.
The offering included several categories of fixed rate notes placed with different institutional investors, the statement said.
In related news, Apple is teaming up with Affirm’s PayBright to introduce a new buy now, pay later (BNPL) service for Apple products in Canada, PYMNTS reported. Users can purchase and pay for iPhone, Mac, and iPad products over 12-24 month periods.
Read more: Apple and Affirm team up as Buy Now, Pay Later race goes global
BNPL has become a popular force over the past year. The BNPL race saw big names like Visa, PayPal, Citi add new installment products in markets like Canada and Australia, which are similar markets in that they have a large number of retail markets. and a base of consumers ready to use the products. In addition, there are also relatively few competing banks in the space.