A new partnership between FIS and Affirm will enable banks to offer Buy Now, Pay Later (BNPL) via debit cards.

San Franciso-based Affirm provides real-time underwriting technology and flexible payment solutions, including BNPL and monthly payment plans.

Through the partnership, FIS banking customers will be able to use Affirm's services in their existing debit card programme through their digital banking mobile apps.

Under the agreement, participating FIS debit processing banks will also be able to offer eligible customers biweekly and monthly payment plans through the bank's existing debit card products and, potentially, merchant-funded financing offers to provide longer payment terms and higher credit limits from Affirm's merchant partners.

Jim Johnson, co-president of banking solutions at FIS, noted that converting and retaining customers has become an important priority for card-issuing banks in an increasingly digitised economy where consumer options are expanding.

"This new programme will deliver Affirm’s leading-edge technology, flexible and transparent payment options, and extensive merchant network to our banking clients, enabling them to continue meeting these needs and offer more competitive, differentiated services through their own banking channels,” he said.

Wayne Pommen, chief revenue officer at Affirm said that the new programme would give more consumers a responsible way to pay over time.

"It will also connect them directly to Affirm’s vast and growing merchant network – delivering an even more valuable and differentiated experience,” he continued.

---