A seamless new BNPL option
Affirm Holdings (AFRM) experienced a 15.9% surge in its stock as of 1:45 p.m. ET on Tuesday following the announcement of an expanded partnership with retail giant Walmart (WMT). Affirm, a buy now, pay later (BNPL) payment-platform company, revealed that customers can now choose its pay-over-time options at self-checkout kiosks in over 4,500 Walmart stores. Although Affirm’s services were already available on Walmart’s website and at its nationwide stores, this expansion covers the self-checkout stations, which accounted for around 30% of all retail transactions last year.
Furthermore, 76% of consumers reported that they would either delay their purchase or abandon it altogether without the buy-now-pay-later option. Affirm emphasized that customers who utilize this option during checkout are always presented with the total cost of their purchase, including any interest charges. As Affirm doesn’t impose late or hidden fees, customers will never pay more than the upfront agreement.
What’s next for Affirm stock?
Affirm stock has already witnessed a significant increase in recent weeks, with a 20% year-over-year rise in BNPL purchases during the weekend following Black Friday. This period is widely regarded as the beginning of the crucial holiday shopping season. Expanding the partnership with Walmart to include self-checkout kiosks could generate substantial incremental growth for Affirm, even towards the end of the season. Affirm’s latest guidance anticipates quarterly revenue ranging from $495 million to $520 million, reflecting an increase from $400 million during the same period last year.
As of now, Affirm’s stock has soared an astonishing 460% year to date. Personally, I will closely observe the story unfold, acknowledging this remarkable achievement.