Target Adds 'Buy Now, Pay Later Options' Via Affirm, Sezzle
Target Corp (NYSE: TGT) blogged its collaboration with Affirm Holdings Inc (NASDAQ: AFRM) and smaller rival Sezzle Inc (OTC: SEZNL) as consumers gear up for the holiday shopping season.
Target began offering its customers the online lender's installment loan service for purchases of over $100.
"We know our guests want easy and affordable payment options that work within their family's budget," said Gemma Kubat, Target's president of financial and retail services.
After filling up a cart on Target's website, a shopper can choose to pay with Affirm and decide on a monthly repayment.
"You'll never pay more than you agreed at checkout as Affirm doesn't charge any late or hidden fees," Target said.
An Affirm spokesperson said in an email to CNBC that a recent survey conducted by the company showed 69% of Americans "are interested in using a pay-over-time solution this holiday season."
Buy now, pay later (BNPL) services, which are installment loans that often come with no interest fees, became famous as retailers responded to consumer demands for easy ways to pay without incurring debt. BNPL providers typically add a checkout button to a retailer's website and then take a cut from the merchant on each transaction.
Price Action: TGT closed lower by 0.32% at $226.83, while AFRM shares closed higher by 19.95% at $133.70 on Wednesday.
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