SAN FRANCISCO - Affirm Holdings , Inc. (NASDAQ: NASDAQ:AFRM), which has seen its stock surge over 130% in the past six months according to InvestingPro data, has announced an expansion of its partnership with Adyen ( AMS (VIE:AMS2): AS:ADYEN), the global financial technology platform. This move positions Affirm as the first Buy Now, Pay Later (BNPL) provider to support Adyen for Platforms, broadening the payment solutions available to Adyen's merchants in Canada.
The collaboration, which began in November 2020, initially allowed Adyen merchants in the U.S. to offer Affirm's payment options both online and through physical payment terminals. The expanded agreement now extends these offerings to Adyen for Platforms customers, which include various online marketplaces and on-demand services. Moreover, Canadian merchants can now provide their customers with Affirm's monthly installment payment plans, adding to the previously available biweekly payment option.
With this partnership, Affirm aims to provide consumers with more flexibility in payment plans, ranging from six weeks to 36 months, at rates as low as 0% APR, while ensuring no hidden or late fees are incurred.
This development follows the significant growth of the Affirm-Adyen partnership, which has seen an average annual volume increase by more than sevenfold from 2021 to 2023. The success of the partnership is evident in the over $125 million processed in payments through AffiniPay, an Adyen partner, using Affirm's Pay Later solution. Affirm's robust expansion is reflected in its impressive 46.5% year-over-year revenue growth, though InvestingPro analysis indicates the company is not yet profitable.
Davi Strazza, president of Adyen North America, highlighted the potential for platforms to integrate payments and financial services, citing a market opportunity of $185 billion for SaaS platforms. The collaboration with Affirm is expected to enhance payment flexibility for consumers in the U.S. and Canada.
Merchants interested in these new payment options can seek further information on how to integrate Affirm's solutions into their checkout processes.
This expansion of services is part of Affirm's mission to provide honest financial products that prioritize trust and transparency, thereby empowering consumers and businesses alike. The company has built a network that eschews late or hidden fees, differentiating itself from traditional credit options.
Information contained in this article is based on a press release statement from Affirm Holdings, Inc. With a market capitalization of over $22 billion and trading near its 52-week high, investors should note that InvestingPro analysis shows the stock typically experiences high price volatility. For detailed insights and 12 additional ProTips about Affirm, including Fair Value estimates and growth projections, explore InvestingPro's comprehensive research report.
In other recent news, Affirm Holdings has been the subject of several notable developments. Deutsche Bank (ETR:DBKGn) has increased its price target for Affirm from $45 to $75, maintaining a Hold rating. This adjustment is based on Affirm's improving fundamentals and growth prospects, following a discussion with the company's recently promoted CFO, Rob O'Hare.
Affirm has also secured a substantial capital partnership with investment firm Sixth Street, providing the company with up to $4 billion for its loans. This partnership is expected to enable Affirm to potentially issue over $20 billion in loans within the next three years.
In addition, Affirm's CFO, Rob O'Hare, engaged in a fireside chat hosted by Deutsche Bank analyst Bryan Keane. The discussion covered a range of topics including the company's strategic direction, product offerings, business model, and financial performance.
Mizuho (NYSE:MFG) Securities exhibited confidence in Affirm, adjusting its price target for the company's stock to $78.00, an increase from the previous $69.00. The revision was based on a comparative analysis between Affirm and its competitor Klarna, highlighting Affirm's strong market position and promising growth trajectory.
Finally, BTIG adjusted its outlook on Affirm, raising the price target to $81 from the previous $68, while reiterating a Buy rating on the stock. This adjustment was based on Affirm's potential to enhance its profit margin and increase earnings per share as it moves into 2025.
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