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AFRM Partners With Costco and Mattress Firm for Smarter Payments

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A leading player in the buy now, pay later (BNPL) space, Affirm Holdings, Inc. (AFRM - Free Report) recently expanded its footprint through two major partnerships with Costco Wholesale Corporation and Mattress Firm. These strategic partnerships are designed to help consumers finance big purchases with confidence, especially during summer and Memorial Day sales.

Costco.com customers can use Affirm to fund online transactions for $500 or more. They need to go through a real-time eligibility check, and approved customers can choose from monthly payment options with transparent terms and no hidden charges. This is especially helpful for higher-priced merchandise like appliances, furniture and seasonal items.

At the same time, Affirm’s fresh partnership with Mattress Firm provides flexible bi-weekly and monthly payment plans across more than 2,200 stores nationwide, as its biggest annual event begins, the Memorial Day Sale. Customers may now buy in-store or online and get tailored financing featuring potentially 0% APR.

This action represents a significant step up in Affirm’s growth path as it accesses the high-volume retail and specialty consumer market. By offering customized payment experiences, Affirm is setting itself up as a go-to alternative to traditional credit.

Affirm’s transaction volume is expected to ramp up with these deals. These are not only going to increase its customer base but also build trust through reputable brands. These partnerships show today’s trend and require flexible, transparent payment and affordable prices. Costco and Mattress Firm join AFRM’s merchant network of more than 358,000 partners.

AFRM Stock Price Performance

In the past year, AFRM shares have rallied 75.1%, outperforming the industry’s growth of 32%.

Zacks Investment Research
Image Source: Zacks Investment Research

AFRM’s Zacks Rank & Key Picks

AFRM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the computer and technology space are Oddity Tech Ltd. (ODD - Free Report) , StoneCo Ltd (STNE - Free Report) and Paylocity Holding Corp (PCTY - Free Report) , 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 Zacks Consensus Estimate for Oddity Tech’s current-year earnings of $2.02 per share has witnessed three upward revisions in the past 30 days against none in the opposite direction. Oddity beat earnings estimates in each of the trailing four quarters, with the average surprise being 32.8%. The consensus estimate for current-year revenues is pegged at $796.4 million, implying 23.1% year-over-year growth.

The Zacks Consensus Estimate for StoneCo’s current-year earnings of $1.41 per share has witnessed one upward revision in the past seven days against none in the opposite direction. StoneCo beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 6.4%. The consensus estimate for the current year’s revenues is pegged at $2.7 billion, indicating 9.8% year-over-year growth.

The Zacks Consensus Estimate for Paylocity Holding’s current-year earnings of $6.95 per share has witnessed seven upward revisions in the past 30 days against none in the opposite direction. Paylocity Holding beat earnings estimates in each of the trailing four quarters, with the average surprise being 15.4%. The consensus estimate for current-year revenues is pegged at $1.6 billion, calling for 12.7% year-over-year growth.

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