Yahoo Finance Peloton owners in Australia will have loans forgiven from Affirm as the lender exits the country
Peloton owners in Australia who paid in installments will get to keep their equipment but no longer have to pay.
This comes after Peloton's financing partner, Affirm, said it would cease operations in the country.
Australia is the first country where Affirm has closed operations.
Peloton owners in Australia who elected to pay off their purchase in installments learned this week that they will no longer have to pay anything for their exercise equipment.
The loans were processed through Peloton's "buy now, pay later" partner, fintech company Affirm, which announced last month it would shut down operations in Australia.
"Affirm has decided to forgive all active Peloton loans within Australia. You can keep your Peloton product, and you won't be charged for the remaining balance of your Affirm loan," Affirm's announcement about the decision reads.
Peloton offers customers the option to pay for their bike, treadmill, and row machine upfront or finance their purchase with Affirm, paying off their purchases in monthly installments spanning 12, 24, 39, or 43 months.
A company spokesman for Affirm confirmed to Insider that the fintech company had limited operations in Australia and that Peloton was the company's sole business partner in the country. The spokesperson said that exiting the country would have a nominal impact on Affirm's business. Australia is the first country where Affirm has closed operations.
In a statement to Insider, Affirm said, "international expansion is a key part of Affirm's long-term growth plans to scale our network and further expand our total addressable market. As we continue to sharpen our focus to drive growth and profitability, we made the decision to begin an orderly wind down of our operations in Australia. We will continue to prioritize North America, where the opportunity remains massive, and invest in our UK expansion."
Peloton did not immediately respond to Insider's request for comment.
Read the original article on Business Insider
