Cart Abandonment is an old problem with newer, bigger issues. For e.g., on Mobile it happens more than on desktop. One Click payments is definitely a step in the right direction, and what if you could combine that with pay later in 30 days? Affirm was founded in 2013 by Max Levchin (CEO, Ex - PayPal), Jeffrey Kaditz (CTO) and Nathan Gettings (CRO). Their team comes from some of the most impressive names in the industry – Google, Zynga, American Express, Yelp, YouTube, Yahoo, Microsoft, ngmoco, Flixster, Palantir, PayPal, slide, Ideo, Square and RoboteX.
Dont get surprised if you see Pay Later in a lot of checkouts going forward, while buying. Pay Later with Affirm is a fast and easy way for users to pay for goods online. Affirm enables them to checkout almost instantly after providing some basic information (such as email or Facebook address). There is no need of entering his personal or credit details. They do not check your credit report or submit information to it either.
How does it work?
- Your mobile phone number and birthday is all that is required to check out with Pay Later. Affirm opens an instant tab for you and your order is processed immediately. No credit card or password details required.
- A user can settle his bills via: bank transfer, check, or a credit or debit card.
- Affirm charges merchants a small fee to provide this premium service for their customers, but they do not charge buyers a fee for purchasing. Affirm is free to use to make online purchases. They will not charge you any fees or interest.
- You can pay your Affirm balance online at www.affirm.com/pay. Affirm accepts payment by debit card, credit card, bank payment, as well as check.
“We are trying to get as close as possible to one-click, which has always been the case on the desktop. In mobile, it has become an imperative to be able to buy it now or you lose a customer quickly,” said CEO Max Levchin. “You will essentially be putting a purchase on a digital tab, and we are going to make it work for us by looking at all available data to determine if you are someone who will pay it back.”
Another company operating in this space (credit risk, micro lending) is Swedish payments giant Klarna. Klarna enables customers to pay for the products they purchase online, after receiving them. Merchants are charged a small fee in turn for Klarna assuming all the credit risk for any consumer’s that fail to pay. The company has raised an astounding $250 Mn through investors including Sequoia Capital, Jane Walerud, Investment AB, General Atlantic, Digital Sky Technologies and QED Investors.