Affirm Holdings, Inc. AFRM recently announced that it has expanded its partnership with WooCommerce. With this move, AFRM became a leading pay-over-time provider for merchants using WooPayments, the integrated payment solution of WooCommerce,in the United States and Canada.
Affirm's payment plans, including biweekly and monthly installments and a new "Pay in 30" option, will now be automatically enabled for WooCommerce merchants, offering more flexible payment options at checkout. This move aims to increase Affirm’s reach, especially among small and mid-sized businesses, while helping merchants boost sales and customer satisfaction.
By becoming a default payment option on WooPayments, Affirm gains exposure to thousands of WooCommerce merchants, expanding its footprint across a diverse range of online businesses. AFRM can attract more consumers, including those shopping with smaller cart sizes, thanks to its new "Pay in 30" option alongside existing plans.
As more WooCommerce merchants adopt Affirm, the volume of transactions processed through its platform is likely to grow, driving revenue. It also reinforces Affirm’s reputation as a trusted and reliable buy now, pay later (BNPL) provider. The company also recently expanded its partnership with Adyen, making it the first BNPL provider to integrate with Adyen for Platforms and entered into a long-term capital partnership with global investment firm Sixth Street.
Affirm boasts a massive growing network of over 320,000 partners globally.Partnerships like these should position the company to achieve its ambitious fiscal 2025 GMV target of more than $34 billion. Additionally, the company anticipates its revenue as a percentage of GMV to grow by at least 20 basis points compared to fiscal 2024.
AFRM’s Price Performance
Over the past year, shares of Affirm have jumped 33.8% compared with the 23% growth of the industry it belongs to.
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Zacks Rank & Key Picks
Affirm currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services space are Coinbase Global, Inc. COIN, DLocalLimited DLO and Cantaloupe, Inc. CTLP. While Coinbase currently sports a Zacks Rank #1 (Strong Buy), DLocal and Cantaloupe carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Coinbase’s current-year earnings of $5.39 per share indicates a massive jump from the year-ago level of 37 cents. COIN beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 341.4%. The consensus estimate for current-year revenues is pegged at $5.7 billion, implying 83.9% year-over-year growth.
The consensus estimate for DLocal’s current-year earnings is pegged at 47 cents per share, which witnessed three upward revisions in the past 60 days against none in the opposite direction. It beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 22.6%. The consensus estimate for DLO’s current-year revenues is pegged at $745 million, implying 14.6% year-over-year growth.
The Zacks Consensus Estimate for Cantaloupe’s current-year earnings indicates a 113.3% year-over-year surge. CTLP beat earnings estimates in two of the trailing four quarters, met once and missed on the other occasion, with the average surprise being 20%. The consensus estimate for current-year revenues implies 15.8% year-over-year growth.
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