Returns have long been a headache for consumers as well as retailers, who saw an average of 16.5% of overall sales – or $800+ billion as a whole – returned last year. We acquired Returnly in 2021 to help solve this challenge. Over eight years, Returnly delivered a seamless, self-service online returns experience to more than eight million shoppers.

Since then, Affirm has reached many milestones as a business. To name a few: we are now available at checkouts representing more than 60% of U.S e-commerce, have introduced new merchant products such as Adaptive Checkout, and have struck a number of new payment partnerships to increase our distribution. We’re now sharing another step forward that will benefit our business and our merchants. We have made the decision to divest our Returnly business and are also entering into a new strategic partnership with Loop Returns, the market-leading returns management solution. Loop will now be the preferred returns provider for merchants who are currently using Returnly. 

Since 2017, Loop has helped more than 2,200 merchants, including top brands on Shopify, increase customer loyalty, retain up to 50% more revenue on returns, and reduce refunds by up to 30%. They also share our commitment to best-in-class product and consumer experiences, making this a natural fit. Starting today, we will work hand-in-hand with Loop to ensure all Returnly merchants have a smooth and efficient transition, prior to sunsetting the platform by early October.

This partnership with Loop and the divestiture of the Returnly business will allow Affirm to take an even deeper focus on driving strong growth and profitability in our core business, serving our merchant and platform partners with world-class payments and technology solutions, accelerating our direct-to-consumer offerings, and building on our deep capabilities in underwriting and decisioning. As ever, we remain steadfast in advancing our mission: delivering honest financial products that improve lives.