US-based Intuit has partnered with Affirm to integrate a BNPL functionality into QuickBooks Payments as an exclusive multi-year offering.
Following this announcement, under the agreement, Affirm will serve as the exclusive BNPL provider within QuickBooks Payments, allowing small and mid-market businesses to offer flexible payment terms to their customers whilst receiving upfront settlement as well.
The integration addresses cash flow challenges faced by small businesses, more than half of which report unpaid invoices averaging USD 17.500 per business, according to Intuit data. Through the partnership, businesses using QuickBooks Payments will have the possibility to enable customers to split invoice payments into instalments, including options with 0% APR, whilst the merchant will receive immediate payment. In addition, Affirm will manage the underwriting, approval, and collection process, removing payment follow-up responsibilities from business owners.
Platform integration and availability
According to the official press release, the pay-over-time functionality will be made available to eligible US-based QuickBooks Online customers using QuickBooks Payments in the coming months. At the same time, the integration will require no additional technical setup from businesses, with Affirm's payment option being set to appear alongside existing methods within the invoicing workflow.
Moreover, Affirm is set to evaluate each transaction individually through its underwriting process, determining approval and terms on a per-purchase basis. The BNPL provider is expected to also operate without charging late fees or hidden charges to consumers, as well as transferring repayment risk from the merchant to Affirm.
The partnership is set to expand Intuit's financial management capabilities for its user base of several small and mid-market businesses. QuickBooks Payments already processes card and ACH transactions, and the addition of instalment payments is expected to provide an additional conversion tool for businesses seeking to increase average order values and broaden their customer base. The institutions will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
