Detroit-based Shinola, known for locally manufacturing watches, bicycles, and leather goods, today announced a partnership with San Francisco-based consumer financing firm Affirm Inc.
Under the partnership, Shinola will use Affirm’s point of sale service to allow customers to pay for purchases across multiple months with simple interest loans.
“Customer experience matters,” says Jacques Panis, Shinola’s president. “It builds trust, loyalty, and repeat purchase. Price alone no longer defines a luxury experience, it’s about values. And payments are now a legitimate, significant part of that package — especially among younger customers who we’re actively courting — and it’s why Affirm is so important for us today.”
Now available at more than 1,000 retailers, Affirm’s financing lets shoppers avoid traditional credit products that charge compounding interest or might have hidden fees or deceptive promotional offers.
Though 25 percent of Affirm customers return to buy again, the service is a low risk for retailers because the company pays them in full at the time of the settlement, and takes full responsibility for fraud or loan defaults.
So far, Shinola’s partnership with Affirm has increased its average order value by 52 percent. As it stands, 50 percent of Affirm users on Shinola’s site are currently between the ages of 18-34, a market the company has been working to reach.