Affirm (AFRM.US) and J.P. Morgan Chase (JPM.US) have reached a partnership agreement to provide “buy now, pay later” loan services to its merchants

The Zhitong Finance App learned that the US fintech company Affirm (AFRM.US) announced on Tuesday that it has reached a cooperation agreement with J.P. Morgan Chase (JPM.US) to provide “buy now, pay later” loan services to its merchants through J.P. Morgan's payment network.

According to information released by both parties, US merchants using J.P. Morgan to process payments will soon be able to add the payment method offered by Affirm on the checkout page. Consumers will be able to apply for loans ranging from 30 days to 60 months, enhancing the flexibility of shopping payments.

The partnership comes after competitor Klarna announced a similar agreement last month. Sweden-based fintech company Klarna said earlier that it will also serve its merchants through J.P. Morgan's payment network. In the “buy now, pay later” field, where the US market is becoming more mature, competition between Affirm and Klarna is becoming increasingly intense. Affirm is currently a publicly traded company seeking a steady increase in profits, while Klarna recently filed an initial public offering with the U.S. Securities and Exchange Commission.

Michael Lozanoff, head of global merchant services at J.P. Morgan Chase's Payments division, said in a press release: “The demand for diversity of payment methods, flexibility, and a smooth transaction experience is at an all-time high level,” said Michael Lozanoff, head of global merchant services at J.P. Morgan Chase's payments division. He also stated, “By integrating Affirm as a payment method into our commerce platform, we can help businesses provide the shopping experience customers expect and better meet the growing demands of the retail sector.”

Affirm said the partnership is an extension of the existing banking and payment processing partnership between the company and J.P. Morgan Chase, the bank with the largest assets in the US. However, it's unclear exactly when merchants will be able to enable this new payment option.