Affirm, the payment network known for its “honest financial products,” has partnered with Virgin Media O2 to provide flexible financing options for the telecom giant’s UK customer base.
The collaboration marks a significant expansion for Affirm just one year after its entry into the UK market. The partnership will see Affirm’s payment technology integrated into Virgin Media O2’s sales channels, offering consumers transparency and choice when purchasing mobile phones, headphones, games consoles, and other hardware.
Flexible financing without the hidden fees
Under the new agreement, both new and existing O2 customers will be able to access a range of monthly payment plans. Affirm emphasizes that its model differs from traditional credit cards by eliminating compound interest and ensuring customers are never charged late or hidden fees.
At checkout, approved customers will be presented with clear pay-over-time options, displaying the total cost upfront. This approach aims to align with the financial needs of modern consumers who increasingly demand predictability in their outgoings.
Chris Bournes, commercial director at Virgin Media O2, commented on the customer-centric focus of the deal: “Providing our customers with choice and flexibility is at the core of Virgin Media O2’s offering. We want to help our customers access the devices they want with an affordable, clear, and convenient payment option that truly works for them. Through our partnership with Affirm, we’ll do just that – empowering our customers by giving them even more choice to pay for their handset via a flexible service they can trust.”
Expanding the SIM-free market
For Virgin Media O2, the partnership provides a strategic opportunity to expand its offering in the SIM-free market, complementing its existing portfolio of Pay Monthly Handset Bundles and SIM Only options.
Ruth Spratt, UK country manager at Affirm, highlighted the scale of the opportunity: “Virgin Media O2 plays a central role in the daily lives of millions of people across the UK. We’re proud to partner with them to bring our honest, flexible and longer pay-over-time options to more customers. As more businesses look to improve the way people pay, Affirm provides a solution that puts transparency, trust and convenience at the centre of the experience.”
The service is expected to become available to Virgin Media O2 customers later this summer, subject to regulatory approval.
The announcement was included in Affirm’s latest earnings report, signaling a robust first year of operations in the UK. Since launching, the US-headquartered fintech has sought to disrupt the local credit market by offering a transparent alternative to traditional revolving credit products.
Affirm is authorised and regulated by the Financial Conduct Authority (FCA) in the UK.