Benzinga | Feb 25, 2021 02:17PM EST

Affirm To Launch First Debit Card With 'Buy Now, Pay Later'

* Affirm Holdings Inc (NASDAQ: AFRM) announced plans for the Affirm Card, which marks the debut of a U.S. debit card with direct pay-over-time functionality.

* The Affirm Card will enable upfront payment from a bank account or post-pay option using a unique post-purchase feature. Consumers will be able to convert any eligible transaction into pay-over-time promptly. It also does not involve late fees or hidden charges.

* "We know consumers are looking for financial control and flexibility. In the last year, we've seen two key trends: huge growth of buy-now-pay-later (BNPL) transactions and consumer preference shift to debit cards over credit cards. The Affirm Card combines the two, allowing Affirm to meet consumers where they are and empowering them to pay on their own terms," said Affirm CEO Max Levchin.

* More than a third of U.S. consumers have used a BNPL service. Moreover, debit cards accounted for 30% of all U.S. payments.

* Affirm plans to launch the Affirm Card later this year.

* Price action: AFRM shares were down 8.76% at $93.51 on the last check Thursday.