FIS and Affirm Partner to Bring BNPL to Debit Cards

U.S. financial technology firms FIS and Affirm have joined forces to integrate buy-now-pay-later (BNPL) services into traditional bank debit cards, as outlined in FinTech Magazine. This partnership aims to help banks retain customers as more people turn to alternative payment methods.

Through this collaboration, banks that use FIS’s transaction processing will be able to embed Affirm’s BNPL technology into their mobile apps and online banking platforms. Customers can then manage installment payments directly through their primary bank accounts rather than using separate services.

Affirm’s network of 335,000 retailers will be accessible to bank customers, allowing merchants to offer specialised financing options, such as zero-interest payment plans and extended payment periods. This was previously only possible through direct relationships with BNPL providers.

Under the partnership, FIS will remain the payment processor, while Affirm will handle credit assessments and payment collection. According to reports, credit decisions will be made in real-time at checkout, eliminating the need for separate applications.

The move reflects shifting consumer payment preferences. Traditional banks are facing competition from fintech startups that offer flexible payment services. To stay relevant, banks participating in this programme can now offer both fortnightly and monthly payment plans through debit card programmes.

Jim Johnson, Co-President of Banking Solutions at FIS, highlighted the importance of this shift: «Customer conversion and retention have become major priorities for card-issuing banks in our increasingly digitised economy, where consumers have endless options.»

This partnership enables banks to compete with standalone BNPL providers while maintaining their direct customer relationships. The report suggests that such integration could reduce customer migration to alternative payment platforms.

The BNPL system will run on existing banking infrastructure, with Affirm’s technology managing credit assessments and payment scheduling. Banks can introduce BNPL services without having to develop proprietary systems.

Additionally, participating merchants may subsidise financing costs, allowing banks to offer zero-interest payment options to qualified customers. These merchant-funded offers could provide longer payment terms and higher credit limits than standard installment plans.

Wayne Pommen, Chief Revenue Officer of Affirm, described the strategic reasoning behind the partnership: «Millions of consumers prefer using a debit card from their trusted financial institution, and we believe they should have easy access to exceptional credit options through their preferred payment method. That’s why, for the first time, we’re bringing Affirm’s proprietary underwriting technology and full suite of pay-over-time solutions to third-party issuers in partnership with FIS.»

This partnership follows FIS’ launch of its Revenue Insight product, which leverages AI-powered predictive analytics to enhance risk management, cash flow, and financial operations.

Seamus Smith, Group President of Automated Finance at FIS, emphasised the potential impact: “Revenue Insight, as part of the FIS Automated Finance suite, can revolutionise the way CFOs manage cash flow in today’s fast-paced environment.

Our vision is to provide systems that turn finance from a cost centre into a growth partner, taking the friction out of finance through visibility, real-time insights, and innovation that maximises revenue and strengthens customer relationships.”

The partnership between FIS and Affirm marks a significant evolution in digital banking. By integrating BNPL services into debit cards, traditional banks can retain customers, offer flexible payment options, and compete with emerging fintech companies. With real-time credit assessments and merchant-backed financing, this collaboration has the potential to reshape how consumers manage payments in the digital age.