Affirm enters the crypto space as Zip partners with Adyen to evolve

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  • Affirm and Zip made announcements this week that should help them maintain their market positions.
  • Product and geographic expansion is becoming increasingly necessary for incumbent BNPL providers.
  • Insider Intelligence publishes hundreds of information, charts and forecasts on the payments and commerce industry. Learn more about how to become a customer.

Two players buy now, pay later (BNPL) made announcements this week that should help them maintain their positions in the market as other companies get involved in the space.

Chart showing that by 2024, 4.2% of global e-commerce transactions will be carried out with a BNPL service

By 2024, 4.2% of global e-commerce transactions will be carried out with a BNPL service.

Insider Information


Affirm will enter the cryptocurrency space with a trading function. CEO Max Levchin has revealed plans to allow customers to buy and sell crypto from their Affirm savings accounts, launched last June, by CNBC, just weeks after BNPL competitor Zip noted this would allow traders to accept Bitcoin payments and possibly enable crypto trading.

  • Integration can help Affirm keep up with Zip, as well as Pay Pal and other companies dabble in BNPL and cryptos. It should also help Affirm attract more customers to its savings app and give the provider more points of contact with customers, which can increase their spending potential.
  • It may also help Affirm maintain a close relationship with Gen Z and Gen Y consumers, who make up nearly 75% of BNPL users in the United States, according to our forecasts. This demographic also includes 32% of crypto owners in the United States, through Logica Research, which makes them likely to opt for Affirm’s new solution and potentially other financial products, such as its debit card.

Zip has partnered with Adyen to scale its BNPL solution to Adyen’s global network. The BNPL provider will allow payment processor merchants – which include retailers like Microsoft and Gap – in Australia, New Zealand, the United Kingdom and the United States to offer its BNPL service to their customers, according to Finextra. Under the agreement, Adyen will also become Zip’s payment processing partner.

Adyen reported $ 246 billion (€ 216 billion) in volume processed in the first half of 2021, up 67% year-over-year (year-over-year), reflecting the vast scale of the business. A partnership with Adyen could give Zip a significant gain in volume and visibility. The partnership can also help diversify Zip’s partner network by giving supplier BNPL access to non-commercial companies such as Booking.com and KLM, allowing Zip to take advantage of BNPL niche segments such as to travel.

Product expansion and geographic expansion are becoming increasingly necessary for legacy BNPL providers like Affirm and Zip as new entrants join the space and threaten to nibble on market share.

This month, Mastercard became the latest financial giant to enter the BNPL space with a proprietary BNPL solution in the US, UK and Australia. planned by early 2022. Visa and major banking brands have also jumped into the space and their existing customer and merchant relationships give them a market advantage over BNPL suppliers. Links and new products can help BNPL providers maintain customer engagement and open new avenues to revenue growth.

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