Affirm (AFRM) Adds Financing Options at Walmart's Self-Checkouts
Affirm Holdings, Inc. AFRM recently expanded its collaboration with the leading omnichannel retailer in the United States, Walmart WMT. As a result, self-checkout kiosks at 4,500-plus WMT stores across the United States will have access to the flexible payment solutions of AFRM. Eligible shoppers can get hold of credible payment options in nationwide Walmart stores, its official website and app as well as across Walmart Vision and Auto Centers.
In addition to reaping the benefits of lesser waiting times at self-checkout systems, the latest addition provides an opportunity for consumers to engage in smooth monthly payments while purchasing electronics, apparel, toys and more from Walmart. The transparent nature of Affirm’s solutions enables customers to get a clear understanding of the total purchase cost at the time of checkout. It does not contain any hidden fees nor does it charge any penalties for missing out or being late on payments.
With the availability of such beneficial payment solutions, consumers will inevitably be encouraged to purchase more. Therefore, the recent partnership extension seems to be a time-opportune move in the promotion of the widespread adoption of Affirm’s financing products amid the ongoing holiday season.
Thus, AFRM aims to harness prospects in the Buy Now Pay Later ("BNPL") market. The space continues to witness widespread popularity as consumers seek installment payment options owing to the financial relief of not having to pay the entire amount at the time of checkout. According to a recent Affirm research, 54% of Americans are keen for retailers to provide a BNPL option at checkout.
Moves similar to the latest one are expected to boost merchant network revenues of Affirm, which improved 29% year over year in the third quarter of 2023. This revenue component comprises merchant fees that it earns from merchant partners (or integrated merchants) in return for using the AFRM platform for processing transactions. More addition of merchant partners within Affirm’s network is expected to boost usage of the financing products suite as well.
Also, the idea of adding its solutions to the self-checkout kiosks of Walmart seems to be prudent, considering the promising growth exhibited by the global self-checkout systems market. The space is anticipated to witness a 10.8% CAGR over the 2023-2033 period, per Future Market Insights.
This December, Affirm seems to be on a spree to expand the reach of its product suite to customers of different organizations. Its collaboration with Blackhawk Network (“BHN”) aims to provide a set of customized financing alternatives while purchasing digital gift cards at BHN and marks entry into a new market. While it entered into a strategic partnership with online eyewear retailer, Zenni Optical, to provide varied financing options to the retailer’s client base, AFRM will also make its solutions available to consumers and merchants using Google Pay at online checkouts across the United States. It also aims to provide increased payment options in the travel industry through its partnership with Liberty Travel.
Shares of Affirm have surged 137.5% in the past three months compared with the industry’s 11.2% growth. AFRM currently carries a Zacks Rank #2 (Buy).
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Other Stocks to Consider
Some other top-ranked stocks in the Business Services space are Barrett Business Services, Inc. BBSI and RCM Technologies, Inc. RCMT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Barrett Business Services outpaced estimates in each of the last four quarters, the average surprise being 73.95%. The Zacks Consensus Estimate for BBSI’s 2023 earnings suggests an improvement of 8.6% from the year-ago reported figure. The consensus mark for revenues suggests growth of 3.9% from the prior-year figure. The consensus mark for BBSI’s 2023 earnings has moved 4.7% north in the past 60 days.
RCM Technologies’ earnings outpaced estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 13.28%. The Zacks Consensus Estimate for RCMT’s 2023 earnings suggests an improvement of 1% from the year-ago reported figure. The consensus mark for RCMT’s 2023 earnings has moved 11.1% north in the past 60 days.
Shares of Barrett Business Services and RCM Technologies have gained 15.2% and 42.1%, respectively, in the past three months.
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