Affirm Expands ‘Buy Now, Pay Later’ Loans into Elective Medical Procedures
Affirm, a leading fintech lender, has quietly expanded its offerings to include ‘buy now, pay later’ (BNPL) loans for elective medical procedures. The company has more than doubled the number of elective medical merchants on its network in the past year, reaching around 130 at the end of 2023.
Affirm’s move into medical highlights how lenders in the space are trying to expand beyond e-commerce. It could also fuel concerns among regulators and advocacy groups that BNPL lending is leading consumers to borrow more than they can afford.
Affirm’s installment product charges between 0 percent and 36 percent, depending on the purchase price and a borrower’s credit profile. The company says it only lends what customers are able to repay, total charges are disclosed upfront, and there are no late or hidden fees.
Affirm is marketing elective medical procedure loans as an alternative to medical credit cards and installment loans, which typically have high interest rates and deferred payment plans. The company believes that its product can provide consumers with a more affordable and convenient way to finance their medical expenses.
As part of the expansion, Affirm has partnered with Weave, a customer relationship management platform for small and medium-sized healthcare businesses, as a distribution partner. The company is also working to integrate its BNPL offering with electronic health records (EHR) systems, which would make it easier for patients to apply for financing at the point of care.
Affirm’s expansion into elective medical procedures is a significant development in the BNPL market. It shows that lenders are increasingly seeing the potential of BNPL in the healthcare sector. However, it is important to note that BNPL loans can be risky for consumers if they are not used responsibly. Consumers should carefully consider their financial situation before taking out a BNPL loan and make sure they can afford the monthly payments.
**Reporting by Hannah Lang in New York; editing by Michelle Price and Bill Berkrot. Copyright 2024. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
