Max Levchin, a PayPal founder, is launching a new mobile-payments startup called Affirm, according to reports.
Affirm works with another startup, Stripe, to process credit card payments, according to an article posted today at All Things D. Levchin was PayPal's chief technology officer from its 1998 founding to 2002, when the company was purchased by eBay.
Affirm will rely on Facebook to authenticate consumers and will use other data to assess risk, the article says. The model more closely resembles a charge card than a credit card, as it requires consumers to pay their bills within roughly 30 days and guarantees payments to merchants based on its assessment that consumers will do so, the article says.
"The Affirm payment platform strikes squarely at one of our strategic priorities – driving revenue through our mobile channel," says Amit Shah, vice president of online, mobile and social for 1800Flowers.com, in a statement on Affirm's website. "The Affirm payment experience is simple, and the great results speak for themselves."
After leaving PayPal, Levchin became founder and CEO of Slide Inc., an online photography company.