Affirm + Stripe shows why ecosystems are crucial in FinTech 🕸; Revolut to IPO soon? 🤔; Despite a pullback in VC funding, some sectors still remain strong 🚀

Good Morning FinTech, 1 June

Good day Everyone,

Happy Wednesday and even more so - happy first day of summer! 🍉 Today’s issue is especially exciting, and it’s undoubtedly the best one this week. It focuses on Affirm & Stripe partnership that shows why ecosystems are crucial in FinTech (+ what’s the only proper way of growth for BNPL), Revolut’s plans to IPO (& the crucial things needed to be achieved before it), and which sectors are still strong despite a recent pullback in VC funding (hint: it could be Metaverse & NFTs). Let’s jump straight into the good stuff:

Affirm + Stripe shows why ecosystems are crucial in FinTech 🕸

The deal 🤝 Buy Now, Pay Later (BNPL) pioneer Affirm has partnered with FinTech heavyweight Stripe to drive growth, making Affirm’s Adaptive Checkout available to Stripe users across the US.

In short, this means that thousands of companies using Stripe will now be able to offer their customers the option to pay in installments.

More on this 👉 Affirm’s Adaptive Checkout tool uses the company’s smart decision engine to make a real-time underwriting decision and provide consumers with optimized bi-weekly and monthly installment options side by side.

Businesses using Stripe can now quickly integrate Affirm’s technology and eligible shoppers can split the cost of purchases ranging from $50 to $30,000, with a maximum credit limit of $17,500. Affirm reportedly commits to never charging late fees or hidden charges.

Why does this matter? 🤔 For Stripe, it means more flexibility since now their merchants can offer more options and potentially increase the average order values. While for Affirm, this partnership gives them an opportunity to generate more revenue as it makes money in part on interest fees.

But there’s more to that. Affirm + Stripe is all about the importance of ecosystems. Here’s the takeaway: