FirstCash Closes $1.17B Deal for First Finance

Global pawn shop FirstCash is closing a deal to acquire the virtual lease-to-own firm American First Finance (AFF) to make traction in the buy now pay later (BNPL) space, according to a press release.

Based in Arlington, Texas and with over 2,800 retail pawn shops across the U.S. and Latin America, FirstCash is buying the Dallas, Texas technology-first retail finance provider AFF to bring BNPL services to underserved communities.

See also: Walmart, Target and Others’ Moves Position BNPL as the Hot Item for 2021 Holiday Selling

“Since our founding more than 30 years ago and through the merger of First Cash and Cash America in 2016, we have successfully executed on our growth strategy and established FirstCash as a leading retailer and provider of financial services to underserved consumers, while delivering significant value to shareholders,” Rick Wessel, FirstCash CEO and vice chairman of the board, said in the announcement.

“This transaction diversifies us beyond our core pawn business with the addition of a fast-growing segment that significantly expands our customer base and introduces a scalable, technology-driven product set into our organization,” Wessel added.

AFF targets underserved shoppers in the U.S. and is among the biggest providers of point-of-sale (POS) payment solutions to that segment of retail customers. Its nationwide network spans 6,500-plus active merchants in-store and online, primarily in furniture, appliances, mattresses and more.

Read more: Lease-to-Own Puts Durable Goods in Reach for Ineligible BNPL, Other Credit Borrowers

FirstCash, too, has focused on underserved consumers, especially those who are cash-strapped and credit-constrained. The company operates thousands of pawn shops nationwide and in Latin America and has a workforce topping 16,000. The chain buys a cross-section of merchandise, including jewelry, electronics, tools and appliances.

AFF’s integrated technology also includes data and eCommerce functions. The firm is projecting estimated revenues this year of $600 million and next year of $800 million, up from 2020’s $350 million.



About: It’s almost go time for the holiday shopping season, and nearly 90% of U.S. consumers plan to make at least some of their purchases online — 13% more than did in 2020. The 2021 Holiday Shopping Outlook, PYMNTS surveyed more than 3,600 consumers to learn what is driving online sales this holiday season and the impact of product availability and personalized rewards on merchant preference.

Pawn Shop FirstCash Closes $1.17B Deal for First Finance to Drive BNPL

Candice Cearley

Next Post

Senate Dems Unveil Plan to Hit Billionaires Like Elon Musk, Jeff Bezos With Tax Hikes

Sat Oct 30 , 2021
Sen. Ron Wyden of Oregon unveiled a plan to hit 700 American billionaires with new taxes. Billionaires like Musk and Zuckerberg would pay tens of billions in taxes if it’s implemented. Democrats argue the plan marks a big step in reversing years of growing inequality at the top. Loading Something […]

You May Like