Amazon Pay Adds Affirm; Shares Surge
Affirm Holdings (AFRM:US) shares rose sharply on Wednesday after Amazon (AMZN:US) said it will add the buy-now-pay-later (BNPL) services provider to its Amazon Pay solution.
Eligible U.S. merchants that use Amazon Pay can now include Affirm’s Adaptive Checkout as a payment solution at the checkout, two companies said in a press release.
As a result, Affirm shares rose as much as 15% on Wednesday to boost year-to-date gains to nearly 90%.
“We know customers want convenient and flexible payment options—whether they’re checking out on Amazon.com or using Amazon Pay,” said Omar Soudodi, director of Amazon Pay. “With Affirm on Amazon Pay, merchants can offer a pay-over-time option to their existing customers and have another way to reach new customers.”
According to two companies, some merchants using Affirm have reported 60% higher average order values when compared to other payment methods.
“Digital wallets are an increasingly critical part of the shopping experience and are expected to account for over half of e-commerce transactions worldwide by 2025,” said Libor Michalek, President of Affirm.
Shares of BNPL provider Affirm fell in the first half of May when the company reported results and said it expects loan delinquency to increase.
This commentary offset the other positives from the earnings report, including the raised guidance that now calls for FQ4 revenue of $390 million - $415 million on gross merchandise volume of $5.2 billion to $5.35 billion. Both financial metrics came in ahead of the Street.
Congressman Daniel Goldman reported recently that he bought some AFRM shares on April 10, when the stock closed at $11.13.
Shares traded around the $18 mark on Wednesday.
