Affirm Holdings (AFRM) continues to rally.
When we first brought the “Buy Now, Pay Later” stock to your attention, it traded at $63. Today, it’s up to $129, as Target joins the BNPL boom.
“Ahead of the busy holiday season, Target is offering shoppers additional ways to pay for their purchases with new installment plans from Affirm and Sezzle,” says USA Today. “Installment plans, which are beginning to replace traditional layaway plans, are increasingly popular with retailers. Amazon and Walmart have adopted them, as have Macy’s and Bed Bath & Beyond. Newer entrants include Paypal, which bought Paidy, and Square.”
With more retailers likely to jump on the bandwagon, AFRM could run even higher.
In fact, according to Bank of America, BNPL apps could grow 10-15x by 2025, and could eventually process $650 billion to $1 trillion in transactions. In addition, according to Yahoo Finance, “The trend is also part of a generational shift: The average user of buy now, pay later services is their 30s, BofA found, and the average amount spent was around $200 to $500 (as compared to $5,000 to $6,000 one would spend on a credit card).”