According to the Securities Times app, American financial technology company Affirm Holdings (AFRM.US) announced on Monday that it has launched installment loan business in the United Kingdom, marking the company's first overseas expansion. Established in 2012, Affirm provides flexible installment payment options, underwrites each transaction before making a loan decision, and does not charge late fees. After being authorized by the Financial Conduct Authority (FCA) in the UK, Affirm offers interest-free and interest-bearing monthly payment options in the UK, with fixed interest rates planned and calculated based on the original principal.

Currently, Affirm has over 50 million users and more than 0.3 million active merchants globally, including Amazon (AMZN.US), Shopify (SHOP.US), and Walmart (WMT.US). In the United Kingdom, the first batch of merchants offering Affirm payment options include Alternative Airlines and Fexco, with more brands expected to join in the coming months.

Affirm CEO Max Levchin stated that the company has been preparing for over a year to enter the UK market, choosing the UK as the first overseas market due to the significant demand seen from local merchants.

"This is a huge market and they speak English," making the company a perfect fit for the market, Levchin said in an interview the week before Affirm entered the UK market. He added that Affirm will eventually expand to other non-English markets, but that will require more effort.

Notably, when launching the Buy Now Pay Later (BNPL) service in the UK market, Levchin mentioned that despite intense competition in the UK fintech sector, Affirm has attracted significant market attention with unique financing products such as extended installment plans of up to 36 months, which solidified the company's entry into the UK market.

Fierce competition.

In the United Kingdom, affirm holdings will face competition from major players like Klarna, Block(SQ.US)'s Clearpay, Zilch, and paypal (PYPL.US), all of which entered the BNPL market in 2020. Levcin emphasizes that affirm holdings stands out due to its range of financing products, especially its 36-month payment plan, which provides customers with more flexibility.

With affirm holdings launching in the United Kingdom, the British government is also in discussions regarding regulatory plans for the BNPL industry. One of the key measures being considered by the government is to require BNPL providers to give clear information to consumers, ensuring that people do not pay more than they can afford, and granting customers rights in case of issues.

Levcin welcomes this and emphasizes that affirm holdings has done a lot of work in the background, excelling in automation and software writing to ensure that responsibility is not shifted to consumers. He points out: "It is dangerous to shift responsibility to consumers."

After months of discussions with regulatory agencies, affirm holdings has obtained authorization from the Financial Conduct Authority (FCA) in the United Kingdom. Levcin states that the company's "good reputation" played a role in the authorization process.

He emphasizes: "We have never charged a penny in late fees. We do not charge deferred interest. We will not engage in any anti-consumer behaviors that people find unacceptable." Therefore, affirm holdings has a good reputation in consumer rights protection, which is one of the reasons why merchants like affirm holdings. With the launch in the United Kingdom market, affirm holdings plans to continue expanding its global influence.