Evolve Selects Affirm as Its Pay-Over-Time Partner
Affirm (AFRM) partners with Evolve to offer pay-over-time options for vacation rentals, providing travelers with transparent and flexible payment solutions. Eligible travelers can split the total cost of bookings over $500 into monthly payments at 0% APR, without late or hidden fees. The partnership aims to boost Evolve's bookings and provide travelers with the opportunity to travel and make memories during uncertain economic times.
The partnership between Affirm and Evolve introduces a new dimension to the travel industry's financial offerings, potentially altering consumer behavior and purchasing patterns. By integrating flexible payment solutions, Affirm is tapping into the growing trend of 'Buy Now, Pay Later' (BNPL) services, which have gained significant traction in retail and are now expanding into travel.
From a market perspective, this move could incentivize travelers to commit to higher-value bookings, knowing they can spread the cost over time. It's a strategic play to capture market share in a competitive space, where customer loyalty can significantly impact the bottom line. The absence of late fees and hidden costs enhances customer trust and satisfaction, which could lead to higher repurchase rates and a stronger brand reputation for both Affirm and Evolve.
However, the long-term sustainability of BNPL models in travel is yet to be fully tested, especially in economic downturns when consumer debt levels are closely monitored. The impact on default rates and the overall financial health of consumers will be key metrics to watch.
For investors, the partnership between Affirm and Evolve is an indicator of Affirm's strategic direction and potential growth avenues. The ability to secure exclusive deals with hospitality companies like Evolve can be seen as a competitive advantage and a driver for increased transaction volumes on Affirm's platform.
Investors should monitor the uptake of Affirm's payment options within Evolve's customer base as an indicator of performance. A successful integration could lead to improved financial metrics such as gross merchandise volume (GMV) and revenue diversification. It's also worth noting that partnerships with travel companies could expose Affirm to seasonal fluctuations in travel demand, which could affect its quarterly performance.
While the offering of 0% APR could attract consumers, it's essential to consider the risk management strategies Affirm employs to mitigate potential credit losses, especially in a sector with a high degree of unpredictability like travel.
The collaboration between Affirm and Evolve reflects a deep understanding of current consumer preferences for financial flexibility and transparency. In the context of uncertain economic times, consumers are increasingly seeking out payment options that offer control and predictability over their finances.
By providing a transparent payment structure with no hidden fees, Affirm is likely to appeal to budget-conscious travelers. The psychological impact of knowing the total cost upfront without the risk of additional fees can be a powerful motivator in consumer decision-making. This could lead to a shift in how consumers approach financing their travel experiences, prioritizing transparency and flexibility over traditional payment methods.
It will be important to observe how this partnership influences consumer loyalty and trust towards both Affirm and Evolve. The ability to cancel bookings without penalty and the offer of credits for future travel could further reinforce positive consumer sentiment and encourage repeat business.
01/09/2024 - 09:00 AM
Travelers now have access to Affirm’s pay-over-time options, never paying late or hidden fees
SAN FRANCISCO --(BUSINESS WIRE)--
Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today announced an exclusive partnership with Evolve , a leading vacation rental hospitality company with more than 30,000 properties in 750 markets. Now, eligible travelers can book vacation rentals and pay over time with confidence in simple monthly payments.
By selecting Affirm at checkout, approved Evolve customers can split the total cost of any booking over $500 0% APR. As Affirm never charges customers any late or hidden fees, they are shown the total cost of their purchase and will never pay more than they agree to upfront.
“We knew Affirm was the right partner for Evolve based on their commitment to transparency – their mission to deliver honest financial products aligns seamlessly with our vision to be the most trusted hospitality brand in vacation rental,” said Eric Schueller, Executive Vice President of Revenue at Evolve. “We look forward to the positive impact this partnership will have on Evolve bookings and the opportunity it will create for people to travel and make memories during these uncertain economic times.”
“Recent Affirm research revealed that the vast majority of Americans - more than 90% - plan to travel this year, and the fact that costs remain elevated means it is crucial travelers have access to flexible and transparent payment options,” said Pat Suh, Affirm’s SVP of Revenue. “By partnering with Evolve, we are able to allow more travelers to book trips without concern for late fees or compound interest.”
When booking with Evolve, travelers are able to book with confidence , knowing they’ll arrive at a home that’s clean, safe, easy-to-access, and true to everything they saw online. Further, guests have 48 hours to cancel bookings made at evolve.com without penalty, and if their plans change at least 48 hours before check-in they can receive a credit that’s good for two years.
Evolve joins over 266,000 Affirm retail partners, including American Airlines, Priceline, Great Wolf Lodge, Cathay Pacific, SeatGeek, Royal Caribbean, and more. Offering Affirm at checkout can drive overall sales, increase average order value, and increase customer repurchase rates.
About Affirm
Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network — one based on trust, transparency and putting people first — we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we show consumers exactly what they will pay up front, never increase that amount, and never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | Twitter .
Evolve
Evolve is reimagining the vacation rental experience with our modern approach to hospitality and property management. We help guests rest easy with vetted homes, bookings that give back, and all the support they need for a great stay. We also support owners in reaching their financial goals, partnering with them to start, manage, and grow their vacation rental business — all for an industry-low fee. Learn more at www.evolve.com .
Payment options through Affirm are subject to eligibility, and are provided by these lending partners: affirm.com/lenders. CA residents: Loans by Affirm Loan Services, LLC are made or arranged pursuant to California Finance Lender license 60DBO-111681.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240109682911/en/
Affirm
press@affirm.com
press@evolve.com
Source: Affirm
Affirm (AFRM) announced an exclusive partnership with Evolve, a leading vacation rental hospitality company with more than 30,000 properties in 750 markets, to offer pay-over-time options for vacation rentals.
Eligible travelers can split the total cost of any booking over $500 into monthly payments at 0% APR, without late or hidden fees, by selecting Affirm at checkout.
Travelers can book with confidence, knowing they'll arrive at a clean, safe, and easy-to-access home that's true to everything they saw online. They also have the flexibility to cancel bookings without penalty within 48 hours and receive a credit for changes at least 48 hours before check-in.
The partnership aims to boost Evolve's bookings and increase customer repurchase rates, ultimately driving overall sales and increasing average order value.
