San Francisco-based Affirm announced Wednesday (April 21), that it has struck a deal to acquire Returnly, which deals with online returns and post-purchase payments. A press release said Affirm will buy Returnly for total of $300 million in cash and equity.
The transaction is expected to close in Affirm’s fourth fiscal quarter ending June 30, 2021, and is subject to customary closing conditions
Affirm bills itself as a buy now, pay later (BNPL) company “with no late fees or surprises.” The release added that Affirm shows consumers “what they will pay up front, never increase that amount, and never charge any late or hidden fees.”
The deal comes as consumers have turned to eCommerce as never before, spurred on by the pandemic. Along with the boom, the number of eCommerce returns has skyrocketed, challenging both vendors and customers.
“Returns continue to be a source of increased costs and complexities for merchants. U.S. consumers returned an estimated $428 billion in merchandise to retailers in 2020. Online returns, which often occur at triple the rate of brick and mortar retail, more than doubled in 2020 from 2019.”
“We started Returnly to fix the broken returns model that offered consumers and merchants nothing but downside and frustration,” said Eduardo Vilar, CEO and founder of Returnly. “We look forward to continuing to serve our customers and help more businesses offer” the company’s returns program.
The companies said that “Returnly serves more than 1,800 merchants, has helped process more than $1 billion in returns, and has been used by over eight million shoppers. With Returnly, eligible consumers receive an instant merchant credit upon initiating a return, allowing them to order a new or replacement item immediately versus waiting until their return is fully processed.”
“Over the last few years, alongside the rapid growth of online shopping, consumers’ expectations of accommodations for returns and exchanges have increased significantly,” said Max Levchin, CEO and founder of Affirm. “In 2019, Affirm invested in Returnly because we recognized their technology’s ability to help merchants remove friction from returns, drive loyalty, and retain more customers.”
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