Affirm has opened its AI powered promotions platform to merchants, helping businesses boost sales with smarter, data-driven offers.
The fintech space is buzzing again. Affirm, the company best known for making buy now pay later mainstream, has just rolled out something new and bold. Affirm has opened its AI powered promotions platform to merchants, promising a smarter way to drive sales, improve customer engagement, and give retailers an edge in a competitive digital marketplace.
When I first read the announcement, I’ll admit I thought it was just another tech update sprinkled with AI buzzwords. But after digging deeper, I realized this is something merchants cannot afford to ignore. Imagine promotions that are not just generic blanket discounts but personalized offers delivered at the right moment to the right customer. That is what Affirm is bringing to the table.
Let’s break this down in plain language so you can understand exactly what Affirm has launched, how it works, why it matters, and what you as a merchant can do with it.
What Happened
Affirm has opened its AI powered promotions platform to merchants in 2025. It had been testing internally and with select partners before, but now it is widely available.
Here are the key points:
- What it is: A promotions platform that uses artificial intelligence to deliver personalized offers and discounts to shoppers.
- Who it is for: Merchants working in retail and e-commerce, whether small businesses or larger brands.
- When it launched: The general rollout happened in 2025, expanding on earlier private trials.
It sounds straightforward, but the potential impact is big.
How the Platform Works
If you run an online store, you are familiar with promotions like “10 percent off sitewide” or “free shipping on orders above 50 dollars.” These work, but they are blunt tools. The problem is that you end up giving discounts to customers who might have bought anyway, which eats into your margins.
Affirm’s AI powered platform approaches it differently. Instead of blasting the same offer to everyone, it studies customer behavior and purchase history to figure out which type of promotion is most likely to close the sale for each individual.
Picture it this way. You are running a café and one of your regulars always orders an oat milk latte. You would not waste time pitching them the seasonal pumpkin drink. You already know what they like. Affirm’s AI behaves like that attentive barista, but it scales across thousands of customers, analyzing patterns instantly and adjusting promotions in real time.
Benefits for Merchants
Boost in Conversions
Tailored promotions mean higher conversion rates. Instead of offering 20 percent off to everyone, you can target just the customers who need that extra nudge. When I helped a mid sized apparel business run a flat discount campaign, sales spiked but profits suffered. Too many loyal customers took the discount even though they would have purchased anyway. A platform like Affirm’s solves that by being selective.
Smarter Targeting with AI
Merchants already juggle ads, inventory, logistics, and customer service. Trying to fine tune promotions for different customer groups can be overwhelming. Affirm’s AI takes on the heavy lifting, crunching data and serving promotions intelligently. It is almost like hiring a full time data scientist, except it comes baked into your checkout experience.
Simple Integration
Affirm has built its reputation on easy integrations with e-commerce platforms. This new tool follows that tradition. Merchants can add it without rebuilding their websites or systems. That makes it practical not only for big retailers but also for small shops running on Shopify or WooCommerce.
Competitive Advantage
The buy now pay later market is crowded. Afterpay, Klarna, and PayPal are all competing for merchant partnerships. Affirm’s approach is clever. Instead of offering only financing, it positions itself as a growth partner. The message is clear: if you choose Affirm, you get not only a checkout option but also AI powered tools to help you sell more.
Why This Matters in the Industry
This announcement is part of a much larger trend. AI is moving from being a buzzword to becoming an operational necessity in commerce.
Here are the bigger takeaways:
- Competition in BNPL is fierce. Every player is looking for ways to stand out. Affirm is using AI promotions as a differentiator.
- Merchants need growth tools. With tight margins and cautious consumers in 2025, promotions that deliver results without excessive discounts are highly valuable.
- Customers expect personalization. Shoppers are getting used to tailored experiences. If you do not offer that, you risk being left behind.
So this is not just a promotional tool. It signals where the industry is heading.
Practical Use Cases
To really see how this works, imagine these scenarios.
- A fashion retailer notices a shopper has returned to the same product page three times but has not purchased. Instead of sending a blanket sale, Affirm’s AI offers that specific shopper 10 percent off if they buy today.
- An electronics store has a customer hesitating on a 600 dollar tablet. The AI determines that free two day shipping might be the deciding factor. That is cheaper for the merchant than offering a discount and still gets the sale.
- A home goods shop wants to reward loyal buyers. The AI identifies repeat customers and gives them early access to a seasonal sale.
When I ran a small online side business years ago, I tested promotions manually, switching between “buy two, get one free” and “15 percent off over 50 dollars.” It was exhausting and inconsistent. If a tool like this had existed then, I would have saved hours and probably seen more predictable results.
Merchant Onboarding and Next Steps
For merchants interested in trying the platform, the steps are fairly straightforward.
- Check eligibility – Merchants already working with Affirm have an easier path, but new ones can apply through Affirm’s site.
- Integrate the tool – Affirm provides integration support for platforms like Shopify, Big Commerce, and custom systems.
- Set your goals – Merchants can specify whether they want to increase first time purchases, improve conversion rates, or raise average order value.
- Launch campaigns – Once the AI starts running, it learns from behavior and continues to optimize.
Affirm also offers resources and case studies to help merchants understand how to get the most out of the platform.
FAQs
Is the platform free or paid?
Affirm has not released exact pricing. Based on industry norms, expect a tiered structure or performance based fees.
How does it compare to other promotional tools?
Most traditional promo engines are static. Affirm’s platform is dynamic and predictive because it is powered by AI and connected directly to its BNPL system.
Does it only work with Affirm’s checkout?
Currently it is designed for Affirm’s ecosystem. Over time, broader compatibility may be possible.
Will customers find personalization creepy?
That depends on execution. When done transparently and respectfully, personalization makes shopping smoother rather than intrusive.
Conclusion
- Affirm has opened its AI powered promotions platform to merchants, and it is more than a product update. It signals a shift in how BNPL companies compete. They are no longer just lenders. They are becoming full scale merchant partners, providing tools to grow sales and improve customer relationships.
- For merchants, the opportunity is significant. Personalized promotions can lift conversions, protect profit margins, and meet consumer expectations. In today’s climate, those advantages matter.
- When I first read the announcement, I thought it might be more hype than substance. But the more I examined it, the more I saw its practical potential. This is not about AI replacing human intuition. It is about enhancing it. Think of it like using GPS. You are still driving the car, but the system helps you take the most efficient route.
- Merchants who embrace this now will likely have an edge. Shoppers in 2025 expect to be treated as individuals, not faceless clicks. Tools like Affirm’s platform help deliver on that expectation without forcing merchants to do all the heavy lifting themselves.
- If you are running an online store or managing a retail brand, this is the right time to explore how Affirm’s AI promotions can support your sales strategy. The businesses that thrive will not be those shouting the loudest with blanket discounts. They will be the ones listening carefully and responding intelligently.
- And that is why affirm has opened its ai powered promotions platform to merchants at exactly the right moment.
Additional Resources
Affirm Launches AdaptAI Official Press Release: Direct from Affirm, this announcement explains how Adapt AI lets merchants create tailored promotions, boost sales, and enhance customer engagement.
