US Buy Now Pay Later Player Affirm Launches In UK, Will Compete With PayPal And Klarna

Affirm Holdings Inc AFRM, a U.S.-based buy now, pay later provider, launched its service in the UK on Monday, marking its first overseas expansion. CEO Max Levchin said Affirm chose the UK due to strong demand from British merchants, describing it as "a huge market, it's English-speaking."

What Happened: Affirm's move places it in direct competition with established players like Klarna and PayPal. Levchin highlighted Affirm's unique approach, with no late fees and fixed interest, stating, "We don't do any of the anti-consumer stuff people struggle with," reported CNBC.

Affirm's launch coincides with the UK government's plan to regulate BNPL services to ensure consumer protection. Levchin supports these efforts, noting, "We welcome regulation that is thoughtful…but also knows how not to be too cumbersome on the end-customer."

Authorized by the Financial Conduct Authority, Affirm's UK service will offer interest-free and interest-bearing monthly payment options.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote