Affirm partners with Walmart for BNPL self-checkout feature
Shares of "Buy Now, Pay Later" provider Affirm (AFRM) are trading higher in Tuesday's pre-market session after the company announced an expanded partnership with Walmart (WMT). The two companies will allow Affirm's flexible payment options for Walmart customers to complete self-checkout purchases in over 4,500 stores nationwide.
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Video Transcript
BRAD SMITH: Well, let's talk a little Affirm here this morning with just a minute or two before the opening bell. Affirm shares, they are jumping, as it's announced that it's expanding its partnership with Walmart, bringing the buy now, pay later function to self-checkouts at over 4,500 US Walmart stores. This is actually initiating a move higher in Affirm shares, this morning up by about 5%.
So that would add on to the-- what? 350-plus percent gain that we've seen over the course of this year in 2023 for Affirm. So this, a big expansion of that partnership. You got to wonder for the customers that are continuing to tap into this type of option, at least on financing of some very week in week out purchases maybe in some cases, or maybe something as large as a television, what type of uptick they'll see.
SEANA SMITH: Yeah. And Brooke DiPalma was on the show yesterday talking about the fact that consumers are opting for these buy now, pay later options, as they are trying to budget a little bit. They are trying to save, given the uncertainty that we are facing right now, given the fact that inflation, although improving, remains extremely sticky.
But when you take a look at some of the numbers that Affirm has come out with-- Affirm saying that their research has revealed that more than half of Americans, 54%, are looking for retailers to offer a buy now, pay later option at checkout. They also went on to say that they found about 3/4, 76%, of consumers would either delay or not make a purchase if they were not given that option of buy now, pay later. So we're seeing more and more of these retailers expand their offerings, or even just include some of those buy now, pay later options.
Given the fact that this environment is very shaky, consumers are stressed. They're trying to figure out every which way that they could try and budget their dollars a bit more. Buy now, pay later, we certainly are seeing the uptick here during the holiday season.
