SAN FRANCISCO • Affirm, a start- up led by PayPal co-founder Max Levchin, has secured US$100 million (S$138.7 million) in financing to expand its consumer lending business that aims to disrupt the credit card industry.

The financial tech company said it obtained the line of credit from investment bank Morgan Stanley.

That brings Affirm's financing to over US$400 million, according to the online database Crunchbase.

Said a company statement: "(Affirm) will leverage the facility to continue its expansion of consumer-friendly point-of-sale financing at leading online and offline retailers."

The start-up "offers consumers an alternative to traditional credit with a straightforward, transparent loan product", added the statement.

Consumers can finance purchases through Affirm, which sets interest rates based on "proprietary technology to verify identity and assess credit risk in seconds".

By using more sources of information than conventional credit-rating agencies, Affirm can serve "to a broader set of consumers", the company said.

Affirm said it has agreements with more than 750 merchants.

It offers retailers an advantage over credit card payments by assuming fraud risk and guaranteeing immediate payment.

Mr Levchin's PayPal was sold to eBay in 2002 for US$1.5 billion and later spun off.

AGENCE FRANCE-PRESSE