Yahoo Finance Affirm (AFRM) Expands BNPL Offerings With New Payment Options
Affirm Holdings, Inc. AFRM recently announced two new payment options, Pay in 2 and Pay in 30, enhancing its payment solutions portfolio. The move from the buy now, pay later (BNPL) solution provider is expected to give consumers more flexibility during payments.
Affirm’s Head of Product, Vishal Kapoor, said that 80% of the domestic market’s e-commerce transactions are for purchases below $150. Providing the new payment options will enable the company to better meet consumers’ individual preferences according to their budget.
The introduction of Pay in 2 will allow consumers to divide the cost of their purchase into two interest-free monthly payments. The Pay in 30 option will enable them to pay the full amount interest-free within 30 days of purchase without incurring revolving debt. The company witnessed a growth in cart conversion within its app following the introduction of the two options, signaling its high demand.
The rise in cart conversion is expected to attract more merchants to AFRM’s network. The company continues to make significant strides in expanding its partnership portfolio and adding new merchants. As of Mar 31, 2024, the number of active merchants increased by 19% year over year to reach 292,000.
Affirm intends to pilot and then broadly launch these new options with its integrated merchant partners over the coming months. These options will be available alongside the existing Pay in 4 and monthly installment plans. The new options come at an opportune time for AFRM as demand for flexible payment options is rapidly increasing.
Price Performance
Over the past year, shares of Affirm have surged 92.5% against the 7% decline of the industry.
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Zacks Rank & Other Key Picks
Affirm currently has a Zacks Rank #2 (Buy).
Investors interested in the broader Business Services space can look at some other top-ranked stocks like Global Payments Inc. GPN, Paysafe Limited PSFE and WEX Inc. WEX, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Global Payments’ 2024 earnings is currently pegged at $11.63 per share, indicating 11.6% year-over-year growth. It beat estimates in each of the past four quarters with an average surprise of 1.1%. The consensus mark for GPN’s revenues of $9.2 billion suggests a 6.4% increase from the year-ago level.
The Zacks Consensus Estimate for Paysafe’s current-year earnings is now pegged at $2.47 per share, indicating 6% year-over-year growth. It beat earnings estimates thrice in the past four quarters and missed once, with an average surprise of 18.3%. The consensus mark for PSFE’s revenues of $1.7 billion suggests a 6.5% increase from the year-ago level.
The Zacks Consensus Estimate for WEX’s 2024 earnings of $16.26 per share suggests 9.8% year-over-year growth. It beat earnings estimates thrice in the past four quarters and missed once, with an average surprise of 3.3%. The consensus estimate for WEX’s current year revenues is pegged at $2.7 billion, indicating a 7.6% increase from a year ago.
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Global Payments Inc. (GPN) : Free Stock Analysis Report
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