The buy-now, pay-later service is acquiring e-commerce returns platform Returnly for $300 million in cash and equity, the company announced Wednesday, April 21.
Returnly works with more than 1,800 brands and retailers, enabling their shoppers to receive instant store credit upon beginning the return process instead of waiting for the return to be processed. Returnly takes on the risk of that credit.
“Over the last few years, alongside the rapid growth of online shopping, consumers’ expectations of accommodations for returns and exchanges have increased significantly,” Max Levchin, chief executive and founder of Affirm, said in a statement.
Affirm initially invested in Returnly in 2019. The financial services company, which works with a number of retailers offering their shoppers the ability to pay off a purchase in several instalments, went public in January. Its market capitalisation is about $17 billion.