Affirm obtains securitisation of its POS instalment loans

Karthik Subramanian

Affirm, the payment network that specializes in BNPL has announced a $500 million securitization of its POS installment loans, in a move that is expected to help with user growth in the future.

The company has reported that it has seen some very strong demand from the investors for this offering which shows how the investors view the company and its potential for growth as the BNPL segment is hot in the market right now and the momentum is expected to be kept up in the coming months as well.

“Our capital strategy continues to be an important point of competitive differentiation for Affirm as our ABS program builds upon its already strong execution,” said Affirm Chief Financial Officer Michael Linford in the release. “Our 2021-B securitization was our most efficient execution to date and provides us with even greater flexibility to support our growth in 2021 and beyond. We appreciate the exceptionally strong investor demand for this offering and the confidence in our platform from our large, diversified group of institutional capital partners.”

The company does this securitization regularly and it is reported that this is the sixth such securitization since the launch of the program in 2020 and each of these efforts has been met with good demand from the investors who seem to lap up the debt that the installment loans offer.

This is a further boost to the company which had recently tied up with Apple for the launch of Apple’s BNPL products in Canada. We had reported the Apple had planned to use Affirm’s Paybright for this purpose which should be a big boost for the company and set it up very well as it can use this opportunity to onboard even more customers on to its platform who are then likely to use it for many more products beyond the Apple universe.

The BNPL segment has been growing very strongly and hence it comes as so surprise that these securitization notes are being lapped up by investors as they expect that the growth would continue. Big players like Klarna, Paypal, and Apple have either entered this space already or are in the process of entering this space which should make it an attractive one for investors now and in the future as well.

Read this next

Digital Assets

Midas launches investment strategies for the ‘crypto winter’

Midas.Investments has released three new investment strategies on its custodial CeDeFi platform, creating new opportunities during the ‘crypto winter’.   The platform merges diverse approaches to digital asset management into single-click products to let investors gain steady profits in any market conditions — including the ongoing bear market. a custodial CeDeFi platform, CeDeFi: Unlocking the […]

Digital Assets

Bitcoin.com Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

Retail FX

TradingView integrates first Brazilian broker, Órama Investimentos

Órama offers all kinds of investment products, from fixed income to crypto-related funds.

<