Affirm Is Exploring Subscription Service to Guarantee 0% APR on Purchases

Affirm Holdings Inc. is exploring the introduction of a subscription service in a bid to create more recurring revenue beyond interest collected from its buy now, pay later plans.

(Bloomberg) — Affirm Holdings Inc. is exploring the introduction of a subscription service in a bid to create more recurring revenue beyond interest collected from its buy now, pay later plans.

The company’s work was discovered inside code hidden within its iPhone application. The code — not present to end users — indicates the firm is looking at charging $7.99 per month for the service, which would offer upgrades for both Affirm’s buy now, pay later plan users and savings account holders.

The subscription service under exploration — called Affirm Plus — would guarantee a rate of 0% APR on installment loans totaling up to $2500, according to the code, which was discovered by developer Steve Moser and shared with Bloomberg News. The company’s payment offerings currently come with APRs ranging from 0% to 36%.

The code also indicates that the subscription could unlock a higher interest rate for Affirm savings accounts. The current code promises an APY, or annual percentage yield, of 4.75%. That’s higher than Affirm’s current 4.35% rate, but could shift based on market conditions.

There’s no guarantee that Affirm ultimately launches the service or that it encompasses the features present in the code. But the effort indicates that the company is looking for new ways to generate revenue and spur user growth amid heightened competition in the buy now, pay later and online savings markets.

An Affirm spokesman said that the company is always exploring new ways to bring value to its consumers and declined to comment further.

Read More: Affirm Says Higher Funding Costs Will Be a Headwind on Margins

The San Francisco-based financial technology company was founded by Max Levchin, one of the co-founders of PayPal Holdings Inc. along with Elon Musk. Levchin, Affirm’s chief executive officer, said last week the firm is targeting additional financial offerings beyond its trademark buy now, pay later options.

A subscription could also help the company hedge higher funding costs it’s been grappling with as interest rates rose. As those elevated costs squeezed margins, the company has sought to take advantage of consumer spending in areas like travel.

Code hidden inside of iPhone applications has accurately revealed future initiatives from a number of companies, including Uber Technologies Inc. and Netflix Inc.

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