Partnership of Affirm with Expedia and Eventbrite will allow you to pay for your experienced in instalment.
When you take any costly service or buy anything costly, then you need to take a loan from a bank, which is not only a lengthy process but many times you end up paying a lot of interest as well. New fintech companies are coming up with innovative and excellent ideas for this kind of problem and Affirm is one of these new start-ups with brilliant ideas.
Affirm is a company that can allow customers to buy things first and pay that later in installments. Initially, this company started only with few niche partners including Boosters boards, Casper Mattresses, and some others. The company knew it would get any success only if it offers more affiliation to customers from more retails. Needless to say, they worked on this front and now they have more than 700 retails merchants and they are positive more shoppers will come to them from different categories.
To attract more customers, they also announced that company is having a partnership with Eventbrite and Expedia with 3, 6 and 12-month repayment plans for the customer that buy concert ticket via Eventbrite or go on a vacation using Expedia.
This partnership is a win-win situation in both the direction. Affirm can get a hand on the existing customer base from Expedia and Eventbrite which is huge in itself. Also, both of these experience providing companies get an extra payment option for their customer. And the most amazing thing about this new payment option is that it is better than other options and according to Affirm, this increased the sales performance for other retailers.
But there is one question as well about one time experience, whether the consumer should get finance for this or not? The answer to this question is simply dependent on the relationship of experience to the date of purchase.
For example, it will always be a good idea to pay advance for six months before going to an exotic dream location. And this opinion is there because people would not want to pay for next six months for an experience that they already enjoyed.
Another problem of financing experiences via these companies is that you never know if people will repay the finance or not after having that experience. With real material you always get things in front of you for a long time and you may use that even after you finish your payment to the company. But this may not be the case in vacation and consumer may decide to leave the Affirm instead of paying money after enjoying a trip. And they may do this because they do not remember the trip that enjoyed a year back or so.
The company has a simple response for this opinion that they are treating tickets and travel in the same way as they treat any material objects. Also, they will use all the data point to check if a consumer can repay the finance or not. In the future, if they notice any change in the payments, they will certainly make necessary arrangement in their business model, so they get maximum repayment from the consumers.