Affirm Holdings experienced a significant surge in its stock price, soaring over 15% following the announcement of an expansion in its partnership with retail giant Walmart Inc. The collaboration will see Affirm’s buy-now-pay-later (BNPL) services being integrated into more than 4,500 of Walmart’s stores across the United States through self-checkout kiosks.
This move comes as part of Walmart’s ongoing efforts to enhance its customer experience by offering convenient and flexible payment options. Affirm’s BNPL solution allows shoppers to spread the cost of their purchases over time, making high-ticket items more affordable and accessible to a broader customer base.
The expansion of this partnership marks a significant milestone for Affirm, whose shares have surged by over 400% this year, making it one of the top performers in the U.S. stock market. This remarkable turnaround comes after the company faced a challenging period in 2022 when its stock plummeted by 90%. With Tuesday’s rally, Affirm’s stock has surpassed its $49 initial public offering (IPO) price from 2021 for the first time since early last year, signaling a strong recovery and renewed investor confidence in the company’s prospects.
Affirm’s success can be attributed in part to the growing popularity of BNPL services, especially among younger consumers who prefer flexible payment options that align with their financial needs. According to recent research conducted by Affirm, more than half of Americans (54%) are actively seeking retailers that offer BNPL options at checkout. Furthermore, a staggering 76% of consumers indicated that they would either delay or refrain from making a purchase if BNPL services were not available.
Pat Suh, Affirm’s senior vice president of revenue, commented on the significance of this partnership expansion, stating, “Recent Affirm research revealed that more than half of Americans (54%) are looking for retailers to offer a buy now, pay later option at checkout. Moreover, we’ve found that 76% of consumers would either delay or not make a purchase without Affirm.”
In addition to its partnership with Walmart, Affirm has also established collaborations with other retail giants such as Amazon and Shopify, further solidifying its position as a leading provider of BNPL services in the e-commerce space. These partnerships not only enhance Affirm’s market reach but also underscore the growing demand for flexible payment solutions in today’s retail landscape.
As Affirm continues to expand its footprint in the retail sector, investors are optimistic about the company’s growth prospects and its ability to capitalize on the evolving consumer preferences for convenient and flexible payment options. With its stock reaching new heights and its partnerships with industry leaders like Walmart, Affirm is well-positioned to maintain its momentum and drive further value for its shareholders in the months ahead.
(Source: CNBC | Business Wire)
