San Francisco-based Affirm announced it has agreed to acquire Returnly, a provider of online return experiences and post-purchase payments, for $300 million in cash and equity.
The deal will add online return solutions to Affirm’s product portfolio and is expected to close in its fourth fiscal quarter, ending 30 June 2021.
The buy–now–pay–later (BNPL) firm said returns are a source of increased costs and complexities for merchants, after US consumers returned an estimated $428 billion in merchandise to retailers in 2020.
Max Levchin, CEO and founder of Affirm, said: “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.”
He added: “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.”
Returnly serves over 1,800 merchants, and has processed more than $1 billion in returns.
Eduardo Vilar, CEO and founder of Returnly, said: “As returns continue to challenge and inhibit commerce, we believe that now is the right time to join forces with Affirm and expand the reach of our mission.”