The collaboration between Affirm and Walmart is expected to increase the purchasing power during the end-of-year festive season as more shoppers can pay over time.
Affirm Holdings Inc (NASDAQ: AFRM), an American financial technology company that offers buy now pay later (BNPL) services for online and in-store purchases, has announced a strategic partnership with Walmart Inc (NYSE: WMT) to expand their services during this holiday shopping season. According to the announcement, Affirm has now expanded its buy now, pay later services to self-checkout Walmart kiosks at over 4,500 Walmart stores in the United States. The partnership increases the shopping capacity for eligible customers, which in return helps the companies widen their sales during the end-of-year festivals.
Following the strategic partnership, AFRM stock closed Tuesday trading at $50.46, up 15.47 percent from the day’s opening price. The $13.19 billion company has seen its stock market gain more than 421 percent in value year-to-date. On the other hand, WMT stock did not have a notable change as they closed Tuesday trading at $155.53, up around 0.36 percent from the day’s opening price.
Affirm noted that more than 54 percent of Americans are looking for retailers that offer buy now, pay later options at checkout during this holiday. Interestingly, Affirm found out that 76 per of its customers either delay or make a purchase without its services
“Expanding our partnership with Walmart and bringing Affirm’s transparent monthly pay-over-time options to their self-checkout kiosks in the US will help even more consumers increase their purchasing power during the holiday shopping season and beyond,” Pat Suh, Affirm’s SVP of Revenue, noted.
Meanwhile, the company highlighted that United States consumers can also pay over time with Affirm at Walmart Vision and Auto Centers.
Affirm Market Outlook
Affirm has in the past inked notable partnerships with different retailers including Amazon.com Inc (NASDAQ: AMZN) and Shopify Inc (NYSE: SHOP). With the increasing demand for buy now, pay later services, Affirm has seen its active customers grow to more than 16.9 million consumers and over $21 billion in gross merchandise volume. Notably, Affirm has also partnered with a myriad of payment companies like Google Pay to offer consumers flexibility in payment options.
With the notable partnerships, Affirm has seen its overall revenue continue to grow year over year. For instance, Affirm reported a total revenue of $497 million, up 37 percent year over year, during the first quarter of fiscal 2024. In a bid to ensure future growth prospects, the company has continued to focus on its strengths and innovate new products. For instance, the company announced that the Affirm Card had more than 400k active users as of September 2023.
