Can Affirm Card Be the Next Evolution of Consumer Payments?

Affirm Holdings, Inc. AFRM, a well-known player in the Buy Now, Pay Later (BNPL) space, is making a bold move with its Affirm Card, marking the next chapter in consumer payments. This card is designed to blend features of traditional debit cards and credit cards, giving users the option to pay upfront or in installments or in personalized financing offers.

This kind of flexibility is likely to attract modern consumers who are increasingly looking for more control, transparency and financing flexibility in their spending. The company aims to broaden its influence on everyday spending and revolutionize its business model. By transforming one-time shoppers into repeat customers, Affirm builds strong connections with merchants who cherish having reliable and engaged customers, which significantly helps in boosting its revenues.

In the fourth quarter of fiscal 2025, AFRM reported robust results, with Affirm Card Gross Merchandise Volume (GMV) rising 132% year over year to $1.2 billion. The number of active cardholders surged 97% year over year to 2.3 million in the same quarter. Additionally, in-store transactions on the card increased 187% year over year, indicating that shoppers are turning to the Affirm Card for their everyday purchases, along with online shopping.

With digital wallets, contactless payments and innovative fintech solutions reshaping consumer behavior, the Affirm Card could serve as a bridge between traditional and modern payment methods. If this momentum keeps up, the card could help AFRM transition from being just a BNPL specialist to a significant player in the broader payments landscape.

How Are Competitors Faring?

Some of AFRM’s competitors in the payment solutions space are PayPal Holdings, Inc. PYPL and Sezzle Inc. SEZL.

PayPal reported 438 million active accounts in the second quarter of 2025, which rose 2% year over year. Its net revenues increased 5% year over year to $8.3 billion in the same quarter. Additionally, PayPal’s total payment volume increased 6% year over year in the second quarter of 2025.

Sezzle reported 2.9 million active consumers in the second quarter of 2025, which grew 9.5% year over year. Sezzle’s total revenues grew 76.4% year over year to $98.7 million in the same quarter. Its gross merchandise volume increased 74.2% year over year.

Affirm’s Price Performance, Valuation & Estimates

Over the past year, AFRM’s shares have surged 101.5% compared with the industry’s rise of 39.6%.

From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 7.02, above the industry average of 5.71. The company carries a Value Score of F.

The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies 400% growth from the year-ago period. The consensus mark for fiscal 2026 revenues indicates 19.6% year-over-year growth.

Affirm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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