Affirm has received a $100 million lending facility from Morgan Stanley. Affirm will use the new capital to expand its Point of Sale (PoS) financing to more retailers. The company stated it expects to triple its loan volume for the year.
Affirm was launched by PayPal co-founder Max Levchin who envisioned a platform that brings the loan making process down to the time of purchase. The PoS platform is designed to provide consumers a better rate than the standard credit card service while providing retailers with a valued service. The lender uses proprietary credit models to help assess the creditworthiness of a borrowers. Affirm is already in place with over 750 online/offline merchants around the country.
Speaking with AFR this past summer, Levchin stated that banks are not just too big to fail – they are too big to innovate. He believes that someday soon, Affirm will be larger than PayPal. He also believes that Affirm will soon challenge global financial institutions.
Levchin also stated;
“In America, four of the leading banks in the US are among the 10 least loved brands and 71 per cent of millennials would rather go to the dentist than listen to what banks are saying.”