Affirm Forms BNPL Pact With J.P. Morgan Payments

Core Insights - Affirm is expanding its buy now, pay later (BNPL) services through a new partnership with J.P. Morgan Payments, allowing merchants on the J.P. Morgan Payments network to offer Affirm's payment solutions at checkout [1] - The collaboration comes as Affirm experiences significant growth, with active customer numbers reaching 21 million, a 23% increase year over year [2] - The partnership aims to enhance the retail experience by integrating Affirm into J.P. Morgan's Commerce Platform, meeting the rising demand for flexible payment options [3] Industry Developments - Affirm plans to start reporting all payment plans to Experian, which is expected to help consumers build their credit histories and manage finances better [3][4] - The expanded credit reporting initiative aligns with a broader trend in the BNPL industry towards incorporating BNPL loans into credit and underwriting decisions [5] - FICO is also working to include BNPL data in credit scoring, with studies indicating that 85% of consumers who opened new BNPL accounts saw consistent impacts on their FICO scores [6] Consumer Impact - The inclusion of BNPL in credit scoring may lead consumers to avoid "stacking" short-term loans, promoting better debt management and improved credit scores [7]