HomeAdvisor announced a new digital payments and financing partnership this month. The home-services platform company said that Affirm would offer project payment options for HomeAdvisor customers at the point of purchase via its mobile app.
When homeowners pay for a project through HomeAdvisor Pay via the HomeAdvisor app, they will be able to select Affirm at checkout. The company will then offer a real-time approval and allow consumers the ability to select term lengths ranging from three to 36 months. HomeAdvisor customers can use Affirm at checkout for “instant pre-priced projects” as well as “any managed project”, a release said.
“Payment is a particularly stressful part of the home services experience, be it due to unexpected expenses or the lack of transparency around the cost of many home improvement projects,” said Brandon Ridenour, chief executive officer, ANGI Homeservices Inc., parent company of HomeAdvisor. “Our homes are one of the largest investments we will make in our lives and require constant maintenance and work. With HomeAdvisor, every customer now has an opportunity to either maintain or upgrade their homes on their budget and their terms.”
In a press release, HomeAdvisor explained the rationale for the partnership. First, the company said, home services is quickly going digital as more consumers find and hire pros online. The company’s system-wide volume was in excess 28 million home projects during the last 12 months. Second, the company said, 60 percent of consumers still pay for their home service projects via traditional methods like cash or check. Third, the company cited a poll from Bankrate, which found that 41 percent of Americans do not have enough savings to cover a $1,000 emergency expenditure. A common home emergency, like water damage, is typically $2,000 or more.
Since rolling out its digital payment platform in April, HomeAdvisor Pay, the company has facilitated “tens of millions of dollars of total payments, processing on average $1 million each week.”
According to the release, Affirm has 6.2 million consumer customers. “Unlike payment options that have late fees, compounding interest and unexpected costs, Affirm shows customers up front exactly what they’ll pay — with no hidden fees and no surprises,” the release said. In addition, the release said the company has 6,500 merchant using its services in the U.S. including Walmart, Peloton, Oscar de la Renta, Audi, and Expedia. Payment options through Affirm are provided by these lending partners: affirm.com/lenders. QR