JPMorgan Chase & Co. is expanding its presence in the buy-now, pay-later (BNPL) market by partnering with Affirm Holdings Inc. to offer flexible installment payment options to merchants in its network.
This move reflects growing consumer demand for alternative payment methods beyond traditional credit cards.
Through this agreement, US retailers using JPMorgan’s payment platform will soon be able to integrate Affirm’s BNPL products at checkout. Consumers will have access to installment loans ranging from $35 to $30,000, with repayment periods spanning from 30 days to 60 months.
“The demand for diverse payment options, flexibility, and seamless transactions from both merchants and their customers is at an all-time high,” said Michael Lozanoff, global head of merchant services at JPMorgan’s payments division.
The partnership builds on JPMorgan’s ongoing efforts to enhance its payment services. It follows a similar agreement with Klarna Group Plc last month, further positioning JPMorgan as a key player in the evolving BNPL landscape.
The buy-now, pay-later sector has gained significant traction, particularly following the surge in e-commerce during the COVID-19 pandemic. These services provide consumers with an alternative to credit cards, offering installment-based payment structures with varying interest rates and terms.
Competition in the BNPL space is intensifying, especially as Klarna prepares for an initial public offering (IPO) in the US Affirm, already a publicly traded company, continues to expand its market presence through strategic partnerships.
Adding to the competitive landscape, Klarna recently announced a separate agreement with OnePay, a fintech company backed by Walmart Inc., highlighting the ongoing race for dominance among BNPL providers.
With this new agreement, merchants using JPMorgan’s platform will be able to offer Affirm’s installment loans as a payment option at checkout, potentially attracting more customers who prefer flexible financing. The collaboration aims to enhance the shopping experience by providing consumers with additional choices when making purchases.
Affirm described the partnership as an extension of its existing banking and processing relationships with JPMorgan. While no specific launch date has been provided, the integration is expected to be available soon to merchants using JPMorgan’s payment services.
