How Adyen & Affirm Extended BNPL Partnership to UK

Adyen, the Amsterdam-based payment processing platform that serves global businesses like Meta and Uber, has expanded its partnership with Affirm, the US buy-now-pay-later (BNPL) provider, to the UK market. 

The move comes after previous successful collaborations in the US and Canada.

The partnership enables Adyen's UK merchant clients to integrate Affirm's payment solutions at checkout. 

This gives consumers access to both interest-free and interest-bearing instalment payment options through Affirm's platform.

BNPL services allow consumers to split purchases into multiple payments over time rather than paying the full amount upfront, often without interest charges for shorter-term plans. 

The sector has grown substantially in the UK, where consumer credit regulations have created a more structured environment for these payment solutions compared to some other markets.

Strategic UK expansion

Nicole Olbe, Adyen's UK Managing Director, points to merchant demand as the driver behind the expansion. “Adyen customers all over the globe are demanding best-in-class payment experiences to boost business and drive customer engagement, which is why we are expanding our partnership with Affirm into the UK.”

The partnership builds on existing operations in North America, where Adyen and Affirm first collaborated in November 2020.

Since then, the companies report their partnership has experienced "significant growth," with average annual transaction volume increasing more than sevenfold between 2021 and 2023.

Adyen's global payment platform provides end-to-end payment capabilities for merchants, handling transactions across online, mobile and in-store channels. The company processes payments for major brands including H&M and eBay.

Affirm, founded by PayPal co-founder Max Levchin, offers point-of-sale loans that allow consumers to make purchases and pay for them over time according to pre-arranged schedules. 

Unlike traditional credit cards, Affirm emphasises transparent terms without late fees or compounding interest charges.

Regulatory framework

This UK expansion follows Affirm's entry into the British market in November 2024. Affirm UK Limited operates under Financial Conduct Authority (FCA) authorisation and regulation, a requirement for consumer credit providers in the UK market.

The FCA's regulatory framework for BNPL providers aims to ensure consumer protection in the rapidly growing sector. 

Firms must conduct affordability checks and provide clear information about payment terms, addressing concerns about potential consumer debt accumulation through these services.

Ruth Spratt, Vice President and UK Country Manager at Affirm, emphasises the company's focus on transparency and flexibility. 

“By deepening our partnership with Adyen, we look forward to helping more merchants to grow their business, and more consumers pay over time on a schedule that works best for them, and always without any late or hidden fees,” says Ruth.

For Adyen merchants, the integration promises a streamlined implementation process. The technical integration allows businesses to offer instalment payment options through their existing Adyen payment setup, avoiding the complexity of managing multiple payment providers separately.

Fintech ecosystem evolution

The expansion reflects broader trends in the payments sector, where traditional boundaries between payment processors, lenders and other financial service providers continue to blur. 

Payment companies increasingly look to enhance their offerings through partnerships that expand payment method options.

This partnership extension follows a December 2024 announcement that Affirm's pay-over-time solutions became available to Adyen for Platforms customers in the US and Canada. 

The “Adyen for Platforms” solution enables marketplaces and platform businesses to manage payments for multiple sub-merchants through a single integration.

The UK BNPL market presents distinct characteristics compared to North America, with higher consumer adoption rates in certain sectors like fashion and electronics. 

The British market has also seen earlier regulatory attention to the sector, with the FCA implementing specific guidelines for providers.

Affirm offers a 22% Representative APR in the UK market, which is in line with regulatory requirements to display representative APR figures for credit products. 

The company's offerings are available to UK residents aged 18 and over with a bank account or debit card, subject to credit checks and minimum spend requirements.

“Businesses across many sectors in the UK rely on Adyen to drive growth; now they can benefit by offering Affirm's more flexible, transparent, and long-term pay-over-time options to their customers,” concludes Ruth.

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