Affirm Holdings announced on February 6, 2026 that it has entered into a partnership with Virgin Media O2, a leading UK mobile provider, to bring its transparent, no‑late‑fee financing to O2 customers. The deal will allow shoppers to finance mobile phones, headphones, and gaming consoles through a range of monthly payment plans, all with no hidden fees or compound interest. The financing options are expected to become available to Virgin Media O2 customers later in the summer of 2026, pending regulatory approval.
The partnership expands Affirms reach into the UK’s mobile market, adding a new customer segment and a new product category—hardware financing—to its portfolio. By offering flexible payment options at checkout, Affirms aims to increase conversion rates and basket sizes for O2’s device sales, while giving consumers a clear, affordable way to pay for high‑cost items. The move deepens Affirms’ merchant network in a new geography and aligns with its ecosystem strategy of providing consumer‑friendly financing across a broad range of merchants.
For UK consumers, the partnership delivers a transparent financing experience that eliminates late fees and compound interest. Flexible payment plans help customers manage the cost of high‑priced devices, aligning with the broader buy‑now‑pay‑later trend and potentially boosting O2’s device sales and customer loyalty.
Affirm’s Q2 fiscal 2026 results provide important context for the partnership. Revenue rose 30% year‑over‑year to $1.12 billion, and earnings per share reached $0.37, beating analyst estimates of $0.27 by $0.10. The revenue growth was driven by strong demand in core segments, while cost control measures helped preserve margins. Management guided for slower gross merchandise volume growth in the third and fourth quarters, citing the loss of a major merchant as a headwind. The guidance signals caution about near‑term growth, which tempered investor enthusiasm despite the earnings beat.
The UK buy‑now‑pay‑later market is highly competitive, with established players such as Klarna and PayPal. Affirms’ entry through a partnership with Virgin Media O2 gives it brand recognition and a robust merchant base in a new geography. For Virgin Media O2, the collaboration offers an enhanced customer experience and the potential to expand into the SIM‑free device market, positioning the company to capture a larger share of the high‑margin device sales segment.
Management highlighted the partnership’s value in a joint statement. Chris Bournes, Commercial Director at Virgin Media O2, said, “Providing our customers with choice and flexibility is at the core of Virgin Media O2’s offering. Through our partnership with Affirms, we’ll give customers an affordable, clear, and convenient payment option with no hidden costs or late fees.” Ruth Spratt, UK Country Manager at Affirms, added, “Virgin Media O2 plays a central role in the daily lives of millions of people across the UK. We’re proud to partner with them to bring our honest, flexible, and longer pay‑over‑time options to more customers.” Max Levchin, CEO of Affirms, emphasized the company’s commitment to transparency and consumer‑friendly financing, positioning Affirms as a modern‑day American Express in the BNPL space.
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