Liberty Mutual Investments Upsizes Partnership with Affirm
Hey Payments Fanatic!
Affirm has expanded its partnership with Liberty Mutual Investments (LMI), the investment arm of Liberty Mutual Group. The forward flow loan purchase program will see LMI buying Affirm installment loans, with up to $750 million outstanding through June 2027. Over time, LMI plans to invest up to $5 billion in the initiative.
This collaboration strengthens Affirm's access to capital for its flexible payment options, a relationship that began in 2019 and evolved into the forward flow program in 2023. Affirm’s Chief Capital Officer, Brooke Major-Reid, shared, “This step builds on our six-year partnership with LMI as we continue driving positive credit outcomes and advancing our growth plans.”
LMI’s John Kim, head of Alternative Credit, highlighted their flexibility: “Our single-client focus allows us to scale solutions for long-term partners like Affirm.”
With over $16.8 billion in funding capacity as of September 2024, Affirm’s diverse funding model supports more than 19 million active consumers, offering transparent payment options with no hidden fees. The company processed over $28 billion in GMV in the past year.
Stay tuned for more updates from the world of Payments below 👇. Catch you soon!
Cheers,
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INSIGHTS
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PAYMENTS NEWS
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GOLDEN NUGGET
What do PayPal, Stripe, and Square do exactly? Let’s dive into the Payments Ecosystem!
The diagram below by ByteByteGo shows a bird eyes views of the payments ecosystem👇
Steps 0️⃣-1️⃣: The cardholder opens an account in the issuing bank and gets the debit/credit card.
The merchant registers with ISO (Independent Sales Organization) or MSP (Member Service Provider) for in-store sales.
ISO/MSP partners with payment processors to open merchant accounts.
Steps 2️⃣-5️⃣: The acquiring process.
The payment gateway accepts the purchase transaction and collects payment information.
It is then sent to a payment processor, which uses customer information to collect payments.
The acquiring processor sends the transaction to the card network. It also owns and operates the merchant’s account during settlement, which doesn’t happen in real-time.
Steps 6️⃣-8️⃣: The issuing process.
The issuing processor talks to the card network on the issuing bank’s behalf. It validates and operates the customer’s account.
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