Eye on E-Commerce: USDA Approves Gopuff To Accept Online SNAP Payments; Affirm Launches In The U.K.

Gopuff, the online food and beverage delivery platform from GoBrands Inc., is now accepting SNAP payments (Supplemental Nutrition Assistance Program) for online orders nationwide.

The deal makes Gopuff the first online delivery platform provider to receive approval from the United States Department of Agriculture to accept SNAP payments.

As part of the deal, Gopuff is partnering with Forage Technology Corporation Inc., the only USDA-approved third-party payment processor, to provide the software that will enable acceptance of SNAP payments on its platform, the company says.

Enabling SNAP recipients is expected to increase access to food and beverage products, especially those that have a disability. One in five SNAP recipients have a disability, according to the Food Research & Action Center, a Washington, D.C.-based nutrition advocacy organization. In addition, the deal will increase access to groceries for SNAP recipients living in food deserts, which are urban areas where it is difficult to buy affordable or good-quality fresh food, according to the USDA.   

Gopuff, which served an average of 42.1 million participants per month in 2023, can deliver groceries in as little as 15 minutes. Gopuff’s inventory of products includes household essentials, groceries, over the counter medication, drinks, and snacks.

In related e-commerce news, buy now, pay later provider Affirm Holdings Inc., has expanded its operations to the United Kingdom. The expansion builds on Affirm’s global presence of 50 million consumers and 300,000 active merchants worldwide.

Affirm says it will initially offer its interest-free and interest-bearing monthly payment options to U.K. consumers. For interest-bearing payment, applied interest will be fixed and calculated solely on the original principal amount, which keeps interest charges from compounding. In addition, Affirm will not charge any late fees or hidden charges. The latter is a selling point for BNPL payment options in the U.K., as nearly one quarter of U.K. BNPL users were charged late fees in 2023, according to Affirm. 

Alternative Airlines Ltd., a flight booking site, and Fexco, an Ireland-based fintech and payments processor, will be the first U.K. companies to offer Affirm.

Merchants in Affirm’s global network include Amazon.com, Shopify Inc., and Walmart Inc. Since 2019, Affirm has processed more than $75 billion in BNPL transactions, the company says.