Affirm Is Making A Comeback In Australia, This Time With Shopify

Top StoryAffirm Is Making A Comeback In Australia, This Time With Shopify

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Affirm has returned to the Australian market through a partnership with Shopify, introducing Shop Pay Installments to local consumers. This re-entry comes after Affirm exited Australia in 2023 due to challenging macroeconomic conditions. The service offers bi-weekly or monthly payment plans, with both interest-free and interest-bearing options, and features real-time underwriting to assess repayment ability. Affirm also emphasized its no-late-fees policy.

The partnership builds on Affirm and Shopify's existing collaborations in the U.S., Canada, and the U.K., where they have processed billions in transactions. Australia, known for its early adoption of BNPL, presents an opportunity to reignite growth in a market that has recently slowed. Affirm's CEO highlighted the importance of providing flexible and transparent payment options tailored to Australian consumers.

Why it matters: Shopify's second major Australian expansion in six weeks, following its July 27 Shop campaigns launch, further entrenches its presence in the region. The partnership enhances Shopify's payment ecosystem and intensifies competition with BNPL leaders like Afterpay and Klarna in a critical market.