Neiman Marcus is trying to expand its base of customers with a new payment option that fits more people’s budgets.
The Dallas-based luxury retailer said Wednesday that it has partnered with Affirm, a San Francisco-based financial technology company, to provide split payments to customers. Affirm works with Nordstrom, Williams-Sonoma, Peloton, Walmart and several other brands to provide their shoppers the option.
Customers can pay for any purchase over $50 on a schedule with terms from six weeks to 36 months depending on the cart size for zero interest.
Example: A $200 purchase might cost $67 over three months with no interest or fees.
While Americans are well-versed in using credit cards, many have learned how interest charges can quickly wreck a big discount on a purchase. At the same time, Home Shopping Network and QVC have built huge businesses by offering flex payments.
“Neiman Marcus was founded on the principle of building long-lasting and meaningful relationships with our customers. We are committed to providing all shoppers with access to leading luxury fashion and high-end products paired with superior service,” said Katie Mullen, chief digital officer, Neiman Marcus Group. “Partnering with Affirm not only allows us to reach customers who need payment flexibility and price transparency in the way they pay, but also increases our sales and average order value.”
People who use the option are spenders, according to Affirm, which said flex payments increase the average online purchase and customer repurchase rates.
Last year, the finance company said merchants using their service reported 85% higher average order values than on other payment options. In the first half of this year, Affirm said nearly 70% of its loans were from repeat customers.
Twitter: @MariaHalkias
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