Affirm, a leading buy-now-pay-later (BNPL) provider, has officially launched its operations in the UK, marking a pivotal moment in the evolving BNPL landscape. The company has processed an impressive US$75 billion in transactions across North America and is now entering a market that has seen increased scrutiny from regulators, particularly the Financial Conduct Authority (FCA). Recent FCA data indicates that 25% of BNPL users in the UK faced late payment penalties in 2023, highlighting the need for a more transparent approach to BNPL services. Affirm aims to differentiate itself by offering a model free from late fees and hidden charges, with a focus on consumer empowerment. The company has received FCA authorization and emphasizes responsible lending through credit checks and fixed-interest calculations. CEO Max Levchin underscores Affirm's mission to provide honest financial products, aiming to replicate its success in the US and Canada while addressing the unique challenges of the UK market.
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