Flexible Payments Provider Affirm To Shut Down Returnly — Retail Bum

Buy now, pay later (BNPL) firm Affirm plans to shutter its returns platform, Returnly, by October 2023 — just over two years after acquiring the company.

In a company post, Affirm Chief Revenue Officer Wayne Pommen stated that Loop, a returns partner for Shopify, would now serve as the “preferred returns provider” for merchants currently utilizing Returnly.

To ensure a seamless transition, Affirm and Loop will work together to migrate Returnly merchants to the Loop platform by October. According to Loop’s recent web post, approximately 1,500 merchants currently rely on Returnly’s services, while Loop serves a broader base of approximately 2,200 merchants. The collaboration aims to facilitate a smooth and efficient shift for affected merchants.

Affirm noted that its decision to sunset Returnly and form a partnership with Loop aims to enhance its emphasis on fostering robust growth and profitability in its core business, among other endeavors.

The move to offload Returnly comes as the U.S. market has faced severe economic challenges this year. With that, profitability has gained increased importance for BNPL providers, who have all set their eyes on improving profitability.

Affirm, for one, had set a target of achieving profitability, specifically on an adjusted operating income basis, by the conclusion of the fiscal year ending on June 30, 2023. In its fiscal third quarter ending on March 31, 2023, the company reported a loss of $205.7 million, which only further emphasized the need for Affirm to focus on improving its financial performance.

Loop did not provide any response or comment upon request.

Originally published at https://retailbum.com on July 11, 2023.