Affirm Teams Up With Ace Hardware to Expand Flexible In-Store Payments

Affirm Holdings, Inc. AFRM has teamed up with Ace Hardware, making it easier for customers to enjoy more flexible payment options at checkout with convenient buy now, pay later (BNPL) solutions in stores. This partnership marks a significant step in AFRM’s plan to integrate itself into everyday retail experiences while enhancing Ace Hardware’s appeal for shoppers who seek affordability without compromising quality.

Through this collaboration, customers at participating Ace locations can now split their purchases into more manageable payments, often with clear terms and no hidden fees. For those dealing with tighter budgets, this added flexibility can make it easier to buy large items for their backyard projects, lawn and home improvements. Customers need to just scan a QR code at checkout, complete a quick eligibility check, and they can access customized payment options for purchases starting at just $50.

The BNPL space has evolved from its e-commerce roots, making a stronghold in everyday retail. As consumers increasingly seek transparency and flexibility in managing their purchases, brick-and-mortar stores are jumping on BNPL solutions. This change is not just transforming the checkout process but also solidifying BNPL as a go-to financial option for many consumers.

AFRM continues to strengthen its foothold across both online and offline retail. By expanding into home improvement retail, the company could attract a wide range of customers and boost transaction volumes, which might help it achieve long-term growth. Its total transactions surged 51.8% year over year in the fourth quarter of fiscal 2025.

How Are Competitors Faring?

Some of AFRM’s competitors in the BNPL space are Mastercard Incorporated MA and Visa Inc. V.

Mastercard is stepping up its game in the BNPL space with the introduction of Mastercard Installments. This new program allows banks, lenders and fintech companies to provide BNPL options through Mastercard’s extensive network. Mastercard reported 16.8% year-over-year growth in net revenues in the second quarter of 2025.

Visa’s processed transactions increased 10% year over year in the third quarter of fiscal 2025. Visa’s payment volume rose 8% year over year in the third quarter of fiscal 2025, along with 14% growth in net revenues.

Affirm’s Price Performance, Valuation & Estimates

In the year-to-date period, AFRM’s shares gained 27.1% compared with the industry’s rise of 19.5%.

From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 6, slightly above the industry average of 5.62. AFRM carries a Value Score of F.

The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies 473.3% growth from the year-ago period. The consensus mark for fiscal 2026 revenues indicates 23.4% 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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