Affirm, the US-based buy now, pay later (BNPL) giant, has officially launched in the UK, marking its first foray into the European market. The move comes as UK lawmakers consider new regulations to bring BNPL firms in line with traditional consumer credit services.

The San Francisco-based company, founded in 2012 by PayPal co-founder Max Levchin, has already established partnerships with major e-commerce players like Shopify, Walmart, and Amazon in the US. With its UK launch, Affirm is looking to replicate this success, having already hired around 30 employees and partnered with companies like Alternative Airlines and Fexco.

Affirm's entry into the UK market is significant, as it positions itself ahead of expected regulatory changes that could impact the BNPL sector. The company's interest-bearing payment options will not involve compound interest, and it has pledged not to charge late fees or hidden charges, differentiating itself from competitors like Klarna.

The UK launch is a key milestone for Affirm, which has faced a turbulent few years, including a significant drop in valuation. However, the company's shares have surged in 2024, and it recently reported a 48% year-on-year revenue jump. With its UK expansion, Affirm is well-positioned to build traction and curry favor with consumers and regulators alike.