Goal: Expand to broader markets by offering customers an alternate way to pay that best fits their budgets.

Peloton manufactures and sells Internet-connected indoor bikes that allow you to stream live and on-demand group fitness classes like the ones at high-end indoor cycling studios or gyms – but in the comfort of your home and on your own schedule.

Affirm’s impact on Peloton’s business

The Peloton bikes feature a large 22-inch, high definition, water-resistant touchscreen, through which you can participate in live classes with fellow riders across the country, or take pre-recorded classes that can be found in their extensive on-demand libraries. From its elegant black carbon steel frame to the immersive socially connected workout experience, the Peloton bike is nothing short of a technological masterpiece. USA Today reporter Jennifer Jolly said the Peloton Cycle is “the most impressive of all the new fitness equipment I’ve tried this year.”

So, as you might imagine, these state-of-the-art bikes and classes can be pricey for some. The bikes currently cost $1,995 with a $39 monthly subscription fee, and, if purchasing optional pedal clips, shoes, weights and a rubber mat, the total cost can run about $3,000.

Affirm increases sales conversions & revenue for Peloton

Though the price point has not been a barrier for Peloton’s traditionally affluent customer set, some challenges have emerged as Peloton’s products have grown in popularity among 30-somethings juggling busy work and family lives. As the company broadens its offering to an increasingly mass market audience, it believes that more and more consumers may be hesitant to make such a large out-of-pocket expense.

“In chats or follow-up surveys of people who abandoned their shopping cart, many say they’d love to have a bike, but just couldn’t pay for it all up front,” said Johnny Jiang, VP of Marketing at Peloton.

Also, once Peloton decided to use Affirm’s 0% APR financing option as a customer acquisition tool, Affirm sales exploded, now accounting for close to 30% of Peloton’s monthly online business sales, up from 15% at launch. “We were worried that 0% APR financing would cannibalize our credit card sales,” said Jiang. “But that hasn’t been the case, and we’re selling bikes to customers that might never have otherwise been purchased.”