The news: Affirm will offer embedded flexible payments for banks and credit unions’ debit card programs through a partnership with Fiserv, per a press release.

The BNPL provider will also support an embedded buy now, pay later (BNPL) solution within Bolt’s checkout interface, per a press release. 

Why this matters: Online, BNPL providers are using strategic partnerships and embedded solutions to push their installment loans to more customers and secure more volume. For Bolt merchants, Affirm will be automatically integrated into their one-click checkout, making it seamless for online shoppers to choose installments for their purchases. 

And BNPL-enabled debit cards have given providers a better shot at more in-retail payment volume, where the majority of spending happens.

• Affirm Cards are held by 2.8 million active cardholders. and 
• And Klarna notched 4 million sign-ups four months after its July debut. 

We forecast that Affirm's payment value will grow by 13.5%, hitting $40.51 billion in volume in 2026.

Partnering with Fiserv lets Affirm convert smaller banks’ debit products into quasi-Affirm Cards, drawing even more payment volume. This can help Affirm counter Klarna’s growing US card presence, especially after its rival’s tie-up with OnePay’s Swipe to Finance, a post-purchase debit product for the Walmart-backed fintech.

Implications for payment providers: Some consumers are wary of fintech offerings, perceiving more safety with products tied to incumbent financial institutions. This partnership gives these shoppers the familiarity of their bank or credit union debit card alongside new payment flexibility. 

Smaller banks or credit unions could secure younger customers by offering installment loans on debit products. While they often can’t compete with larger issuers on credit card perks, beefing up payment flexibility on debit cards still gives young adults early in their careers meaningful access to alternative credit, as pathways to traditional credit lines shrink.