BNPL giant Affirm has agreed to buy online returns and post-purchase payments player Returnly for about $300 million in cash and equity.
Returnly works with more than 1,800 merchants, helping them process more than $1 billion in returns, and has been used by over eight million shoppers.
The firm's model sees customers receive an instant merchant credit upon initiating a return, allowing them to order a new or replacement item immediately rather than waiting until their return is fully processed.
Returnly takes the product return risk and settles orders in real time, promising to help merchants drive higher return-to repurchase rates, increased revenue from returns and higher customer satisfaction.
Max Levchin, CEO, Affirm, says: “In 2019, Affirm invested in Returnly because we recognised their technology’s ability to help merchants remove friction from returns, drive loyalty, and retain more customers. Store credit, issued before the item is actually returned, is now a practical requirement in highly competitive segments like fashion and lifestyle.
"We are excited to bring Returnly’s powerful product to our merchants, and we are thrilled to introduce their more than eight million users to the transparent, gotcha-free version of buy-now-pay-later as made possible only by Affirm.”