LONDON — February 6, 2026
Executive Summary
Affirm and Virgin Media O2 have announced a new partnership to introduce flexible, transparent hardware financing options for O2 customers in the United Kingdom. Through the collaboration, new and existing O2 customers will be able to access pay-over-time options when purchasing mobile phones and other hardware, with costs displayed upfront and no late or hidden fees. The financing will be delivered through Affirm’s payment network and integrated into the O2 checkout experience, enabling customers to select monthly payment plans that align with their budget. According to the companies, the partnership is designed to expand payment choice, support affordability, and enable Virgin Media O2 to broaden its device and SIM-free offerings while maintaining compliance with UK regulatory requirements. Flexible payment plans are expected to be available later this summer, subject to regulatory approval.
Announcement Overview
Affirm and Virgin Media O2 have entered into a partnership that will bring pay-over-time financing options to O2 customers purchasing devices and related hardware. The agreement introduces Affirm’s installment-based financing model into the O2 retail and digital purchase journey, allowing customers to spread the cost of eligible hardware over a series of fixed monthly payments.
Under the partnership, Affirm will support financing for a range of products, including mobile phones, headphones, and gaming consoles. Approved customers will be presented with their available payment options at checkout, with the total cost of the purchase shown upfront. According to the companies, customers who choose an Affirm payment plan will not be charged late fees or hidden charges, and interest does not compound over time.
The partnership applies to both new and existing O2 customers and is intended to increase flexibility at the point of purchase. Virgin Media O2 stated that the collaboration also creates optionality to expand its offering into the SIM-free device market, complementing its existing Pay Monthly Handset Bundles and SIM Only propositions.
Key Announcement Details
- Announcement type: Commercial partnership
- Companies involved: Affirm and Virgin Media O2
- Market: United Kingdom
- Product scope: Mobile phones and consumer hardware, including accessories
- Financing model: Pay-over-time installment plans
- Customer eligibility: New and existing O2 customers, subject to approval
- Fee structure: No late fees or hidden fees; total cost shown upfront
- Availability: Expected later summer 2026, subject to regulatory approval
- Regulatory status: Affirm authorised and regulated by the UK Financial Conduct Authority
Partnership Scope and Customer Experience
According to the companies, the integration of Affirm’s financing solution into the O2 checkout experience is designed to give customers clearer visibility into the cost of their purchases. At checkout, eligible customers will see a range of monthly payment options, with repayment schedules and total amounts displayed before completing their transaction.
Affirm stated that its payment network is built to provide transparency at the point of sale, allowing consumers to understand exactly what they will pay over the life of a loan. The company noted that, unlike traditional revolving credit products, its installment plans do not involve compound interest and do not include late payment penalties.
Virgin Media O2 indicated that the partnership aligns with its focus on offering customers greater choice when purchasing devices. By adding Affirm as a financing option, O2 customers can select payment structures that better match their financial circumstances without relying solely on traditional handset contracts or credit cards.
Strategic Context
According to the companies, the UK mobile and consumer electronics market continues to evolve as customers seek greater flexibility in how they purchase devices. Hardware prices have increased over time, while customers increasingly expect clarity and predictability around payments.
Virgin Media O2 operates across a highly competitive telecommunications landscape, where differentiation increasingly extends beyond network coverage and service bundles to include the overall purchasing and payment experience. The partnership with Affirm is positioned as part of Virgin Media O2’s broader effort to provide multiple pathways for customers to access devices, whether through bundled contracts, SIM-only plans, or SIM-free purchases.
Affirm stated that the collaboration reflects growing demand from merchants for payment solutions that emphasise transparency and customer trust. The company noted that its UK operations are focused on providing regulated consumer credit products that meet local compliance standards while expanding payment choice at checkout.
Leadership Commentary
“Providing our customers with choice and flexibility is at the core of Virgin Media O2’s offering. We want to help our customers access the devices they want with an affordable, clear, and convenient payment option that truly works for them. Through our partnership with Affirm, we’ll do just that – empowering our customers by giving them even more choice to pay for their handset via a flexible service they can trust, with no hidden costs or late fees,” said Chris Bournes, Commercial Director at Virgin Media O2.
“Virgin Media O2 plays a central role in the daily lives of millions of people across the UK. We’re proud to partner with them to bring our honest, flexible and longer pay-over-time options to more customers. As more businesses look to improve the way people pay, Affirm provides a solution that puts transparency, trust and convenience at the centre of the experience,” said Ruth Spratt, UK Country Manager at Affirm.
Regulatory and Compliance Framework
Affirm stated that its UK operations are authorised and regulated by the Financial Conduct Authority and that all financing offered through the partnership will be subject to regulatory approval. The company noted that credit is subject to eligibility checks, minimum spend thresholds, and applicable terms and conditions.
According to Affirm, customers using its payment plans in the UK are required to be residents aged 18 or over with a bank account or debit card. The company also disclosed that missed payments could affect a customer’s financial status and that a representative annual percentage rate applies.
Virgin Media O2 indicated that the rollout timeline for the new financing option is dependent on regulatory processes and system integration, with availability expected later in the summer.
Impact on Device and SIM-Free Offerings
Virgin Media O2 stated that the partnership provides flexibility to expand further into the SIM-free device market. By enabling customers to purchase devices separately from airtime contracts, the company can address a broader range of customer preferences and purchasing behaviours.
The company currently offers Pay Monthly Handset Bundles and SIM Only plans and indicated that Affirm’s financing option adds another layer of choice within its device ecosystem. According to Virgin Media O2, this approach allows customers to combine flexible payment methods with the network and service options that best meet their needs.
Market Environment
The partnership announcement comes amid broader changes in consumer credit and payments across the UK retail and telecommunications sectors. According to industry participants, customers are increasingly evaluating payment options based on clarity, predictability, and regulatory oversight.
Affirm stated that its model is designed to align with these expectations by providing installment-based credit products with clearly disclosed terms. The company noted that its partnerships with merchants are intended to support responsible spending and budgeting by consumers.
Virgin Media O2 highlighted that customer choice remains central to its commercial strategy as it continues to invest in network coverage, digital services, and customer experience across its consumer and business segments.
About Affirm
Affirm was founded in 2012 with a mission to deliver transparent financial products designed to improve consumer outcomes. The company operates a payment network that enables consumers to pay for purchases over time using fixed installment plans rather than revolving credit.
Affirm provides financing solutions to thousands of businesses and serves millions of consumers, primarily across the United States, United Kingdom, and other international markets. The company’s products are designed to display the total cost of a purchase upfront, with no late fees or hidden charges.
In the UK, Affirm operates through Affirm UK Limited, which is authorised and regulated by the Financial Conduct Authority to carry out regulated consumer credit activities. The company is registered in England and Wales and offers credit products subject to eligibility checks and applicable terms. Affirm reported that its payment solutions are used by consumers to purchase a wide range of goods, including electronics, apparel, and consumer services.
About Virgin Media O2
Virgin Media O2 launched on June 1, 2021, following the merger of Virgin Media and O2. The company operates the UK’s largest and most reliable mobile network alongside a fully gigabit-capable broadband network.
Virgin Media O2 reported approximately 45 million UK connections across broadband, mobile, television, and home phone services. Its fixed network covers more than half of the UK, with approximately 18.7 million premises serviceable, while its mobile network covers 99% of the UK population. The company stated that it is on track to extend 5G coverage to all populated areas by the end of 2030 and already provides outdoor 5G coverage to more than 80% of the population.
Through its business-to-business operations, including O2 Daisy, Virgin Media O2 supports enterprises and public sector organisations with connectivity, security, cloud, and digital services. The company also manages mobile virtual network operator relationships, including giffgaff and Sky Mobile, and operates a joint venture with Tesco for Tesco Mobile.
Virgin Media O2 is a 50:50 joint venture between Liberty Global and Telefónica S.A. and is registered in England and Wales. The company has stated its commitment to achieving net-zero carbon emissions across its operations, products, and supply chain by 2040.
Media Contact
Affirm
Email: affirm@headlandconsultancy.com
Source Attribution
Source: Company announcement