American buy now pay later giant Affirm Inc is set to follow its largest merchant partner – Peloton Interactive – into the Australian market after establishing an operating subsidiary in Sydney.

Peloton, a New York-based fitness equipment and online exercise provider that rolled out an Australian operation in July, accounts for almost one third of Affirm’s group revenue in the US.

Affirm is an exclusive provider of instalment loans and payment deferral funding for Peloton’s customers in the US and the arrangement is expected to be emulated in Australia.

Peloton’s Australian website currently lists no BNPL product as a funding option for local customers.