‘Buy now, pay later’ is taking over the consumer market as more and more players join the game, but Affirm remains ahead of the pack.
Oct. 7, 2021
Buy now, pay later (BNPL) is taking the fintech industry by storm, with the likes of PayPal, Square, Apple, and more joining the rat race.
But pure-play BNPL leader Affirm (NASDAQ: AFRM), arguably the best in the business, is not waiting around to be passed out.
Affirm signs yet another superstore deal
In recent months, Affirm has signed up with Amazon, Shopify, and Walmart to bring their customers BNPL solutions. It seems only natural then that its next ‘target’ would be, well, Target…
It was reported yesterday that Affirm will be offered as an option for customers spending more than $100 on a purchase at Target — a big win for Affirm coming up to the holiday season. Playing U.S. superstore bingo, this hooked fish proves yet again that Affirm can stay ahead of the rising tide of big-name competitors.
This is important because the BNPL remains in its infancy, and Affirm still has plenty of room to grow. Indeed, the platform has increased the number of its active merchants by over 410% in the past year to 29,000, whilst its active consumer grew 97% to 7.1 million.
Most of this growth is down to clever deals such as the above, whilst it also appeals to a younger generation of consumers, many of whom have become disillusioned with the concept of credit cards — or simply don’t qualify for them.
Affirm has incredible potential to disrupt the credit card industry, as its service would do away with the costly servicing fees that many merchants have to pay. Coming up to the holiday season, investors would do well to keep an eye out for updates on Affirm’s big store revenue. Should it continue to sign successful deals, it could be a promising growth opportunity!
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