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Walmart Offers Omnichannel, Point-of-Sale Payment Financing with Affirm

Walmart is teaming up with Silicon Valley fintech company Affirm to offer in-store and online loans for eligible shoppers.

Without performing a full credit check, Affirm uses a few pieces of consumer data to determine whether someone qualifies for a loan and, if so, at what amount. People shopping in store can check their eligibility on their smartphone without having to talk about financing needs with store staff. Upon approval, shoppers choose their repayment terms: three month-, six month- or 12-month installments. Consumers see what each payment would cost them every month, including interest, and Affirm doesn’t charge late fees for missed payments. In the final step, approved shoppers receive a barcode on their smartphone that an associate scans at checkout to finalize the transaction.

Purchases must total a minimum of $150 to qualify for Affirm financing and max out at $2,000. Affirm isn’t an option for Walmart shoppers in Iowa, West Virginia and Puerto Rico.

“We are focused on providing customers transparent, easy and convenient ways to pay, and offering Affirm both in stores and online is one way to do that,” Daniel Eckert, senior vice president of Walmart services and digital acceleration, said. “Providing multiple ways to shop and finance select items with no hidden fees is an important way we deliver on our promise to help our customers save money and live better.”

Walmart said it’ll integrate Affirm into its website in the coming weeks.

Affirm founder and PayPal alum Max Levchin told American Banker his company spent nearly a year developing the technology to make the Walmart omnichannel deal possible, as Affirm had mostly focused on offering loans online.

The news comes as Walmart reported strong e-commerce growth in the fourth quarter and set forth plans to continue the momentum.