Affirm launches AdaptAI for merchants

The platform, which the company had previously deployed in its own consumer-facing products such as the Affirm App and Affirm Card, is now available at the point of sale through participating retailers. 

By analysing user data in real time, AdaptAI adjusts promotional offers according to customer profiles, factoring in elements such as purchase size, spending habits, and shopping preferences. These offers may include reduced annual percentage rates (APRs), extended repayment plans, or immediate discounts.

Aligning with consumer spending patterns

According to Affirm officials, the platform is designed to replace uniform promotions with adaptive ones that reflect individual buyer needs at the time of transaction. For instance, a shopper making a USD 500 purchase might be offered a 12-month, 0% APR option, resulting in potential interest savings compared to traditional revolving credit. Alternatively, a returning customer could be presented with a longer-term, interest-bearing payment plan if it aligns more closely with their preference for budget predictability. 

Affirm officials indicated that this system differs from standard credit card reward models, which they described as less transparent and slower to deliver value. They added that AdaptAI's approach is grounded in real-time underwriting and machine learning algorithms that enable merchants to offer terms that are more closely tailored to customer behaviour. 

With this move, Affirm is positioning AdaptAI as a way for retailers to offer immediate, individualised payment benefits during checkout, rather than after a purchase has been completed. The tool is intended to give merchants more control over promotional strategies while potentially improving customer retention and engagement.