SAN FRANCISCO - WooCommerce, a leading open-source ecommerce platform, has announced the expansion of its partnership with Affirm (NASDAQ: AFRM), a pay-over-time financial product provider with a market capitalization of $19.79 billion. According to InvestingPro data, Affirm's stock has shown remarkable momentum, delivering a 109% return over the past six months despite recent market volatility. The collaboration will integrate Affirm as a default payment option within WooCommerce's payment solution, WooPayments, for U.S. and Canadian merchants. This strategic move comes as Affirm demonstrates strong business momentum, with InvestingPro data showing impressive revenue growth of 46.55% in the last twelve months.
This enhancement to the payment system will enable merchants to offer Affirm's customized pay-over-time plans at checkout, including a new Pay in 30 option, alongside biweekly and monthly installments. The initiative responds to growing consumer demand for flexible payment alternatives, with WooCommerce experiencing a 45% increase in merchants utilizing Affirm this year.
Web Griebel, Head of Payments at Woo, highlighted the timely nature of the partnership, noting that merchants using Affirm have seen higher average order values. The integration aims to drive further growth for WooCommerce merchants by catering to a broader range of transactions and customer preferences.
Affirm's Chief Revenue Officer, Wayne Pommen, expressed excitement about becoming a default payment option for thousands of merchants, emphasizing the potential to extend Affirm's reach, particularly among small and mid-sized businesses.
The collaboration is expected to benefit established WooCommerce businesses, as illustrated by the positive feedback from Gardyn's CMO, Benjamin De Castro. He praised Affirm's solutions for providing choice, flexibility, and transparency, which have contributed to an enhanced checkout experience and accelerated business growth.
Affirm is committed to offering honest financial products without late fees or compound interest, aiming to support responsible spending and saving. The partnership with WooCommerce represents a strategic move to increase Affirm's presence in the ecommerce space and support merchants in boosting sales and customer retention.
This development is based on a press release statement and reflects the latest step in WooCommerce's efforts to provide flexible ecommerce solutions to its more than 4 million online shops worldwide. For investors seeking deeper insights into Affirm's financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, featuring detailed metrics, expert analysis, and fair value estimates among 8+ additional ProTips currently available for AFRM.
In other recent news, Affirm Holdings (NASDAQ:AFRM) has seen several significant developments. JMP Securities has upgraded Affirm to Market Outperform, setting a target at $78. The upgrade is backed by Affirm's strong revenue growth of 46.5% and strategic partnerships that support international expansion. Analysts from Deutsche Bank (ETR:DBKGn), Mizuho (NYSE:MFG) Securities, and BTIG have also shown confidence in Affirm by revising their price targets to $75, $78, and $81 respectively.
Furthermore, Affirm has expanded its partnership with Adyen (AS:ADYEN), a global financial technology platform, to broaden payment solutions for Adyen's merchants in Canada. This collaboration has resulted in an average annual volume increase by more than sevenfold, with over $125 million processed in payments.
In addition to these developments, Affirm has secured a significant capital partnership with the investment firm Sixth Street. This partnership, providing the company with up to $4 billion for its loans, is expected to enable Affirm to potentially issue over $20 billion in loans within the next three years. These recent developments highlight Affirm's strategic growth and market position.
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