Affirm Surges 10.59% on $3.97 Billion Volume as Stripe Partnership Drives BNPL Expansion and Ranks 14th in Market Activity

On August 29, 2025, Affirm (AFRM) surged 10.59%, with a trading volume of $3.97 billion, ranking 14th in market activity. The stock’s momentum followed the expansion of its partnership with Stripe, introducing buy now, pay later (BNPL) integration on Stripe Terminal. This collaboration enables Affirm to leverage over one million in-store devices, enhancing its presence in both digital and physical retail channels.

RBC Capital reaffirmed its “Sector Perform” rating and $75 price target for AFRM, acknowledging the company’s strong gross merchandise volume (GMV) performance and omnichannel growth. However, analysts highlighted risks, including potential competition in the U.S. market and a possible 5% GMV reduction from Walmart volume. These challenges could temper fiscal 2026 estimates, though planned U.K. launches with Shopify are seen as mitigants.

The Stripe integration aligns with Affirm’s strategy to expand its merchant footprint and BNPL accessibility. By embedding flexible payment solutions into global payment infrastructure, the company aims to strengthen its role in the evolving payments ecosystem. While hedge fund interest and AI-driven investment themes position AFRM as a beneficiary of broader market trends, investors are advised to monitor competitive dynamics and merchant contract risks.

Affirm’s projected 2028 revenue and earnings targets—$5.6 billion and $376 million, respectively—require sustained growth amid current losses. The Stripe Terminal expansion represents a key step toward achieving these goals, but long-term success will depend on Affirm’s ability to maintain GMV momentum and navigate market pressures.

Backtest results indicate Affirm’s 10.59% gain on August 29, 2025, with a trading volume of $3.97 billion. The stock’s performance was driven by the Stripe partnership announcement and RBC’s updated analysis, reflecting short-term optimism about its strategic initiatives and AI-related investment potential.