SAN FRANCISCO - Affirm Holdings Inc. (NASDAQ: NASDAQ:AFRM), a payment network known for its buy now, pay later services, has announced the integration of its payment system with Apple (NASDAQ:AAPL) Pay. Starting today, U.S. customers using iOS 18 and iPadOS 18 or later versions can access Affirm's pay-over-time options when checking out both online and in-app with Apple Pay.
This collaboration allows eligible Apple Pay users to split their purchases into biweekly or monthly payments, with the possibility of 0% APR. Vishal Kapoor, Affirm’s Senior Vice President of Product, expressed enthusiasm about combining the convenience and security of Apple Pay with Affirm’s flexible and transparent payment structure, which includes no late or hidden fees.
Jennifer Bailey, Apple’s Vice President of Apple Pay and Apple Wallet, also highlighted the added flexibility and choice for users at the point of sale, emphasizing the seamless integration with the existing Apple Pay experience.
The process for users entails selecting Affirm as a payment option after choosing "Other Cards & Pay Later Options" during the Apple Pay checkout. A quick eligibility check follows that does not affect the user's credit score. Approved customers can then view customized payment plans, select the best fit, and finalize the purchase using Face ID or Touch ID for authentication.
Affirm asserts that each transaction will be underwritten individually to promote responsible lending, ensuring that customers will not incur any late fees or unexpected charges. The company reinforces that the privacy and security features of Apple Pay remain intact, with no transaction information retained by Apple.
Payment plans through Affirm are subject to eligibility and are provided by affiliated lending partners, as listed on the company's website. In California, loans are made or arranged by Affirm Loan Services, LLC in accordance with a California Finance Law license. The Affirm Card™, which is also compatible with Apple Pay, is a Visa (NYSE:V)® debit card issued by Evolve Bank & Trust.
This announcement is based on a press release statement from Affirm and does not include any external sources or analysis.
In other recent news, Affirm Holdings Inc. has been making significant strides in the financial sector. The company has reported robust financial performance in the fourth quarter of its fiscal year 2024, surpassing market expectations. Analyst firms Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Needham have all commented on Affirm's recent developments, with Goldman Sachs and JPMorgan maintaining a Buy and Overweight rating respectively, while Needham maintains a Hold rating.
Affirm's strategy includes maintaining a 30% growth in Gross Merchandise Volume (GMV) while moderating operating expenses growth. The company has committed to achieving GAAP profitability by the fourth quarter of 2025, supported by significant operational leverage. Affirm has also announced leadership changes, with CFO Michael Linford expanding his role to Chief Operating Officer and Rob O'Hare stepping in as the new CFO.
The company plans to surpass conservative credit outcome targets and drive growth by increasing annual spend per Affirm card and active cards. These recent developments are part of Affirm's strategy for fiscal 2025, with the company leveraging its machine learning capabilities for underwriting and maintaining a strong sales team for merchant acquisition. This information provides investors with a glimpse into Affirm's future financial health and operational performance.
InvestingPro Insights
Affirm Holdings Inc. (NASDAQ: AFRM) has made significant strides in the financial technology sector, particularly with its recent integration with Apple Pay. This move is expected to boost the company's visibility and user engagement. Reflecting on Affirm's market performance, InvestingPro data indicates a robust revenue growth of 46.29% in the last twelve months as of Q4 2024, showcasing the company's expanding business operations.
Investors looking at Affirm's stock will notice it has experienced a notable one-month price total return of 54.69%, pointing to strong investor confidence and a positive reaction to recent developments. Moreover, the company's stock has seen an impressive one-year price total return of 80.59%, indicating sustained growth over a longer period.
For those considering investing in Affirm, it's important to note an InvestingPro Tip that analysts do not expect the company to be profitable this year. Additionally, another InvestingPro Tip highlights that Affirm's stock generally trades with high price volatility, which may be a critical factor for risk-averse investors to consider.
For further insights and tips, including the 12 additional InvestingPro Tips available for Affirm, investors can explore more in-depth analysis at InvestingPro: https://www.investing.com/pro/AFRM.
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