Affirm Extends BNPL Offering to Adyen's Platform Customers

Core Insights - Affirm is expanding its partnership with Adyen, becoming the first buy now, pay later (BNPL) provider to support Adyen's payment solution for platform businesses, enhancing payment options for Adyen merchants in Canada [1][2] - The partnership targets Adyen for Platforms customers, including peer-to-peer marketplaces, on-demand services, and crowdfunding platforms, and has seen significant growth, with average annual volume increasing over seven times from 2021 to 2023 [2] - Affirm has formed a long-term capital partnership with Sixth Street, which involves an investment of up to $4 billion to purchase Affirm loans, allowing Affirm to extend up to $20 billion in loans over the next three years [3][4] Industry Trends - The BNPL market is experiencing increased usage among cash-strapped consumers, with a PYMNTS report indicating that those facing cash flow shortages are 3.5 times more likely to use BNPL compared to financially stable consumers [5][6] - The report highlights that 8.9% of consumers with frequent cash flow shortages used BNPL in the past 30 days, compared to only 2.5% of stable consumers, indicating BNPL's accessibility compared to traditional credit [6]