BNPL company Affirm has been planning to roll out its instalment loans to renters, in collaboration with Esusu.
According to previous reports, Affirm is set to provide these services available through its partnership with Esusu, which delivers financial education, credit reporting assistance, and emergency zero-interest loans to tenants. In an email statement offered to the same sources, an Affirm spokesperson mentioned that this pilot with Esusu will bring a flexible option for managing one of their largest monthly expenses for eligible renters.
Affirm expands its support for renters
Affirm positions itself among the first BNPL companies to deliver these services to tenants paying their monthly rent. However, Adam Rust, the director of financial services for the Consumer Federation of America, underlined that Zip already has rental payments as part of its offering. Regardless, he mentioned that Affirm is one of the first BNPL providers of its size to do so.
Furthermore, even if the Affirm spokesperson stated that they could not comment on when the company’s services will be available via Esusu, and there is no announcement about the partnership, a drop-down menu on Esusu’s website says the instalment loans through Affirm are coming soon.
In an exclusive statement to The Paypers, a representative from Affirm confirmed the plans, stating that this pilot with Esusu will provide eligible renters with a flexible option for managing one of their largest monthly expenses. Select renters who choose to use Affirm through Esusu can apply to pay rent in two equal payments every two weeks at 0% APR, with no hidden or late fees, or compounding interest.
They added that it is a transparent option that provides flexibility for renters to align expenses with their paychecks. Affirm underwrites every application individually, and it approves people for what it believes they can responsibly afford to pay. The company is approaching this use case and evaluating it alongside Esusu, which shares its focus on clear, consumer-first financial tools.
The industry’s response to BNPL
Senior attorney at the NCLC who focuses on tenant protection, April Kuehnhoff, stated her concern regarding the launch, as it could lead to renters getting stuck in a cycle of debt. She added that there are still questions about how this would work and what it means for consumers and tenants.
As a whole, the BNPL industry has faced extensive scrutiny throughout the years, with critics being concerned about the possibility that users of such services are encouraged to spend beyond their means. As a response, BNPL providers defend their services, underlining that they offer loans to individuals who cannot access traditional credit.
