Affirm Holdings Expands Stripe Partnership with In-Store Buy Now Pay Later Option

Affirm Holdings expanded its partnership with Stripe to integrate buy now, pay later services into Stripe Terminal, boosting transaction volume and revenue growth. The collaboration contributes to the company's narrative of enhanced market positioning and expanded reach. Affirm's share price increased by 50% last quarter, reflecting strong investor confidence in its growth prospects, despite current challenges. The integration with Stripe may positively influence forecasts for revenue and earnings growth.

Affirm Holdings, Inc. (AFRM) has recently expanded its partnership with Stripe to integrate its buy now, pay later (BNPL) services into Stripe Terminal, the point-of-sale (POS) system used by over a million in-store locations across the United States and Canada. This strategic move aims to enhance Affirm's market positioning and expand its reach, thereby boosting transaction volume and revenue growth [1].

The integration allows shoppers to use Affirm's BNPL services at checkout through Stripe's POS devices. By scanning a QR code and completing a quick eligibility check, customers can select repayment terms ranging from one month to 60 months for purchases from $35 to $30,000, avoiding any late or hidden fees. This development is particularly significant as physical stores still account for more than 80% of retail spending, even in a digital-first era [1].

The collaboration between Affirm and Stripe is expected to increase Affirm's transaction volume and merchant adoption without heavy integration costs. Affirm's total transactions surged 45.6% year over year to 31.3 million in the last reported quarter. Meanwhile, Stripe will likely benefit from higher merchant retention and potential increases in payment processing volume as customers opt for larger purchases financed over time. Additionally, both companies can tap into cross-selling opportunities [1].

Affirm's share price has gained 27.6% year to date, outperforming the broader industry and the S&P 500 Index. From a valuation standpoint, Affirm trades at a forward price-to-sales ratio of 6.23X, up from the industry average of 5.84. The Zacks Consensus Estimate for Affirm’s fiscal 2025 earnings implies a 103% improvement year over year, followed by massive growth next year [3]. The stock currently carries a Zacks Rank #3 (Hold).

The integration with Stripe may positively influence forecasts for revenue and earnings growth, as it broadens Affirm's distribution without requiring separate hardware or onboarding. Merchants using Stripe Terminal can now offer BNPL options both online and in stores, potentially lifting conversion rates and average order values.

References:
[1] https://finance.yahoo.com/news/affirms-expanded-stripe-partnership-boost-140200643.html
[2] https://finance.yahoo.com/news/affirm-expands-buy-now-pay-153255836.html
[3] https://www.tradingview.com/news/zacks:4e798518e094b:0-affirm-s-expanded-stripe-partnership-to-boost-in-store-bnpl/