Affirm, a payment network in the US, has joined forces with Blackhawk Network, a digital gift card distributor. This partnership offers consumers more options when buying gift cards, especially as they become popular during the holiday season.
Thanks to this collaboration, shoppers can use Affirm to purchase digital gift cards from a wide range of brands, including those in entertainment, dining, fashion, outdoor gear, and home products, among others. The process is simple: consumers undergo a quick real-time approval after selecting their desired gift card on Affirm’s website or app. Once approved, they can choose from various payment plans, some with 0% APR for qualifying purchases. The full cost is transparently displayed upfront, ensuring no surprise fees or extra charges later.
Key Takeaways:
- Enhanced Gift Card Accessibility: Affirm’s collaboration with Blackhawk Network expands consumer options for purchasing gift cards, providing a seamless and flexible payment experience. With instant approvals and various repayment plans, including 0% APR options for eligible purchases, consumers can easily acquire digital gift cards from a diverse range of brands, from entertainment and dining to fashion and home products.
- Transparent and Flexible Financing: Affirm’s platform ensures transparency in cost, displaying the full amount upfront without hidden fees. This transparency, combined with the flexibility of payment plans, aligns with consumer preferences and addresses the growing demand for clear and adaptable payment options, especially during peak shopping seasons like the holidays.
- Strategic Partnership for Market Expansion: The collaboration between Affirm and Blackhawk Network leverages the strengths of both companies to tap into the rapidly growing digital gift card market. With Blackhawk Network’s extensive global reach and Affirm’s innovative financing solutions, the partnership is poised to significantly expand Affirm’s presence in the gift card sector and drive merchant fees through increased sales.
- Commitment to Sustainability and Innovation: Beyond the partnership, both Affirm and Blackhawk Network demonstrate a commitment to environmental sustainability and innovation. Blackhawk Network’s collaboration with Visa to transition to more sustainable materials for prepaid cards reflects a proactive approach to reducing environmental impact. Meanwhile, Affirm’s comprehensive platform and diverse merchant partnerships underscore its dedication to fostering digital and mobile-based shopping experiences tailored to evolving consumer needs.
Affirm and Blackhawk Network’s Partnership In Gift Card Financing
Affirm has teamed up with Blackhawk Network, a leading digital gift card distributor in the US, to provide consumers with clear and flexible payment choices for buying gift cards. For those looking to purchase digital gift cards, Affirm offers a straightforward financing option. Customers can apply for a loan directly on the Affirm platform and receive instant approval. After approval, they can select from various repayment plans. What’s more, eligible purchases come with a 0% APR, meaning customers won’t pay any interest on the loan, making it an attractive option.
Becca Stone, Affirm’s VP of Strategic Partnerships, highlighted the company’s commitment to providing fair payment options. She mentioned that Affirm believes in not penalizing people for late payments or last-minute shopping, especially during the holidays. Stone pointed out that a recent survey by Affirm revealed that 70% of Americans plan to buy gift cards this holiday season. With Affirm’s clear and adaptable payment choices, customers can easily purchase these popular gift items. She also expressed excitement about the partnership with BHN, as it allows Affirm to reach new customers and broaden its network.
Customers can buy digital gift cards with confidence through Affirm’s platform, knowing the total cost upfront and without any surprise fees, even if they miss a payment. This transparent approach applies to various brands in dining, entertainment, fashion, home goods, outdoor gear, and more, available directly on Affirm’s website or app.
The recent collaboration with Blackhawk Network opens doors for Affirm in the rapidly growing digital gift card market. Blackhawk Network collaborates with around 37,000 partners and has roughly 400,000 global touchpoints. With Blackhawk Network serving over 300 million global shoppers daily, Affirm’s reach is set to expand significantly.
For Affirm, partnerships like this offer a chance to increase merchant fees by driving more sales through their financing options, especially their popular 0% APR plans. This flexibility, allowing customers to buy now and pay later in installments, aligns with the growing popularity of Affirm’s financing solutions.
Brett Narlinger, who leads Global Commerce at Blackhawk Network, mentioned that they’re enthusiastic about teaming up with Affirm as trusted partners to some of the world’s biggest brands. Together, they aim to offer consumers a clear and adaptable way to buy gift cards. Narlinger highlighted the rapid growth of digital gift cards, which are expanding at twice the rate of physical ones. With the US gift card market projected to hit $260 billion in the next three years, this partnership allows merchants to provide extra payment options for holiday shoppers, especially when shipping deadlines are tight.
Blackhawk Network’s Recent Strategic Collaborations and Initiatives
Blackhawk Network, a key player in global branded payment technologies, has pursued initiatives to foster stronger connections between brands and their stakeholders. The company’s multifaceted portfolio encompasses a variety of offerings such as Gift Cards, eGift products, promotion and distribution services for revenue enhancement, Rewards, and Incentives, and comprehensive Payment solutions that facilitate seamless fund transfers for businesses and consumers alike.
Environmental Sustainability Partnership with Visa
In a noteworthy move at the onset of September 2023, Blackhawk Network forged a significant partnership with Visa. The collaboration aimed to launch a global environmental sustainability initiative, signaling a commitment to eco-friendly practices.
As part of this initiative, Blackhawk Network announced plans to transition Visa open-loop prepaid cards offered through third-party retail networks from conventional plastic materials to more sustainable paper-based alternatives. This transition underscores Blackhawk Network’s dedication to reducing environmental impact while maintaining its robust payment solutions.
Expansion of Digital Distribution Capabilities with Recharge.com
Additionally, in July 2023, Blackhawk Network strengthened its existing partnership with Recharge.com, a leading digital marketplace. The expanded collaboration sought to enhance the digital distribution of gift cards across key markets in the US and Canada.
Through this strategic alliance, Blackhawk Network aimed to diversify its offerings on Recharge.com’s platform by introducing a range of e-gift and virtual prepaid card brands. Notable additions to the digital marketplace included merchant-specific gift cards, versatile open-loop cards, and multi-store e-gifts, thereby enriching the consumer experience and broadening Blackhawk Network’s digital footprint.
About Affirm
Affirm Holdings Inc. runs a platform that focuses on digital and mobile-based shopping in the US, Canada, and worldwide. Their platform offers various services like a point-of-sale payment solution for businesses, an app for consumers, BNPL solutions, and partnerships with banks and financial markets. This setup allows customers to spread out their payments for purchases over as long as 60 months.
The company serves a diverse range of merchants, from big companies to small shops, including those with both online and physical stores. These merchants come from various sectors such as outdoor gear, home goods, travel bookings, fashion, electronics, etc. Founded in 2012, Affirm is based in San Francisco, California.
About Blackhawk Network
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Blackhawk Network, Inc. offers prepaid and payment services across the US and Canada. They provide various card-based financial products, including retail gift cards for popular brands, general-purpose gift cards, sports and event tickets, phone and telecom cards, and reloadable debit cards. The company also provides convenient services like CoinMaster kiosks, DVDPlay machines, in-store banking, ATMs, and an ACH payment network called Fast Forward. They distribute their digital content through gift card displays in various retail outlets such as mass retailers, grocery stores, and specialty shops.
Originally known as Blackhawk Marketing Services, the company changed its name in 2006. Founded in 2001 and based in Pleasanton, California, Blackhawk Network operates globally with offices in Germany, Canada, Mexico, the UK, France, and Australia. It functions as a subsidiary of Blackhawk Network Holdings, Inc.
Conclusion
The collaboration between Affirm and Blackhawk Network marks a significant step forward in enhancing consumer accessibility and flexibility in the digital gift card market. By combining Affirm’s innovative financing solutions with Blackhawk Network’s extensive network and brand partnerships, the partnership meets the growing demand for transparent and adaptable payment options, drives merchant growth, and expands market reach.
Moreover, the commitment to sustainability and consumer-centric initiatives further underscores the companies’ dedication to fostering responsible and inclusive commerce. As the holiday season approaches and the gift card market thrives, this strategic alliance sets a precedent for future collaborations prioritizing consumer empowerment and sustainable business practices.
