Affirm, the fintech startup led by PayPal co-founder Max Levchin that lets online merchants advance credit to consumers at the point of sale, is branching out through the introduction of a high-yield savings account.
Affirm has built up a 5.3 million-strong customer base for its alternative to credit cards, with particular success among millennials who are unhappy with banks and might have trouble getting funds from more traditional sources because of thin credit histories.
Now it is hoping to win other those same young Americans with its savings account. The company notes that millennials are carrying an average of $5000 in credit card debt and most have less than $500 tucked away for emergencies.
"This is why we created a better way for consumers to save — one that is simple and transparent, and helps consumers reach their savings goals, whether for a big expense or something unexpected," says the firm.
The account has a 1.3% APY, no minimums or fees, and optional auto-deposit to make saving easy, all available through the Affirm app.