Affirm Holdings, Inc. (NASDAQ:AFRM) shares were initially up on Tuesday after the company announced a major buy-now, pay-later partnership, though the stock later pared some of those gains.
• Affirm Holdings stock is trading in a tight range. What should traders watch with AFRM?
The company said it reached a new strategic agreement that could broaden payment options across a large checkout network.
Needham analyst Kyle Peterson also upgraded the stock from Hold to Buy, with a $100 price target.
Partnership Details
Bolt, the commerce platform powering faster checkout experiences, selected Affirm as its default BNPL partner.
Eligible shoppers will see Affirm's payment option alongside traditional card choices during checkout.
The integration requires no extra setup from merchants and starts rolling out with select partners this month.
Bolt said broader rollout across its entire merchant base will follow in the coming months.
Checkout Experience
The partnership embeds Affirm's BNPL option directly into Bolt's one-click checkout.
Shoppers can apply for personalized installment plans at checkout without leaving the page. Affirm's plans may include biweekly or monthly payments with 0% APR when eligible.
The company said it never charges late fees, hidden fees or compounding interest.
Merchant Benefits
The integration could help merchants increase conversion and average order values, the companies said.
Bolt merchants can offer pay-later options broadly across the network. Affirm said merchants may attract new customers with flexible payment plans at checkout.
The deal could make Affirm's service a standard choice for digital sellers using Bolt's platform.
According to Benzinga Pro, Affirm stock has gained over 24% in the past year. Investors can gain exposure to the stock via Amplify Digital Payments ETF (NYSE:IPAY).
Affirm Holdings Price Action: AFRM shares are trading down by 0.14% to $68.61 at publication on Tuesday.
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