Fiserv and Affirm Bring BNPL to Debit Programmes

Fiserv and Affirm have announced an expanded partnership aimed at embedding buy-now-pay-later (BNPL) functionality directly into debit card programmes offered by banks and credit unions. The collaboration marks a significant shift in how pay-over-time options are delivered, moving BNPL beyond merchant checkouts and standalone fintech apps into mainstream banking infrastructure.

Through the partnership, financial institutions using Fiserv’s payments and digital banking platforms will be able to offer Affirm’s pay-over-time services to debit cardholders without developing their own credit or lending products. The initiative is designed to help banks and credit unions meet growing consumer demand for flexible payment options while retaining customer engagement within their own digital ecosystems.

Extending BNPL Beyond Credit and Checkout

Traditionally, BNPL has been associated with e-commerce checkouts and credit-based products, often delivered directly by fintech providers at the point of sale. The Fiserv–Affirm collaboration changes this model by enabling debit card users to split eligible purchases into fixed instalments after a transaction has been completed.

Debit cardholders will be able to access these pay-over-time options directly through their bank’s mobile app or digital banking interface. Affirm will handle underwriting, loan origination, and servicing, while Fiserv provides the infrastructure that connects the service to thousands of financial institutions across the US.

This approach allows banks to offer flexible payment experiences without taking on additional credit risk or building complex lending capabilities in-house.

How the Integration Works

Under the new model, eligible debit transactions can be converted into instalment plans with clear repayment schedules and transparent pricing. Consumers will see repayment terms upfront, with no late fees or hidden charges, in line with Affirm’s existing BNPL principles.

Fiserv’s role is to embed the functionality into its debit and digital banking platforms, ensuring a seamless experience for both institutions and end users. The solution is expected to be rolled out gradually, giving banks and credit unions the ability to activate BNPL features within their existing debit programmes.

Because Affirm’s network spans hundreds of thousands of merchants, debit cardholders will be able to access pay-over-time options at a wide range of online and in-store locations where debit cards are accepted.

Strategic Benefits for Banks and Credit Unions

For banks and credit unions, the partnership offers a way to compete with fintech-native BNPL providers and neobanks that have built flexible payments into their core offerings. By keeping BNPL within their own branded apps, institutions can strengthen customer relationships and reduce the risk of users shifting spending activity to third-party platforms.

The move also helps issuers increase debit card usage and transaction volumes, while responding to younger consumers’ expectations for budgeting tools and flexible payments. As BNPL adoption continues to grow, particularly among Gen Z and millennial users, embedding these services into everyday banking products is increasingly seen as a competitive necessity.

Broader Industry Implications

The expansion of BNPL into debit programmes reflects a broader trend in the payments industry, where flexible financing is becoming a standard feature rather than a niche add-on. It also highlights how large payment technology providers like Fiserv are positioning themselves as enablers of innovation for traditional financial institutions.

For Affirm, the partnership represents an opportunity to extend its reach beyond merchant-driven BNPL and into core banking experiences, tapping into a wider base of consumers who primarily rely on debit rather than credit.

As regulators continue to scrutinise BNPL models globally, the emphasis on transparency, fixed repayments, and integration with trusted financial institutions may help shape the next phase of pay-over-time services.

Looking Ahead

Fiserv and Affirm’s collaboration signals a shift toward more embedded and institution-led BNPL offerings. By bringing pay-over-time functionality to debit cards, the partnership could redefine how flexible payments are delivered and accelerate the convergence of traditional banking and fintech innovation.

As banks and credit unions look for new ways to stay relevant in a rapidly evolving payments landscape, debit-based BNPL may emerge as a key tool for balancing innovation, customer trust, and long-term engagement.