Back to top

Image: Bigstock

Affirm & Priceline Expand Partnership to Offer Pay Over Time Solutions

Read MoreHide Full Article

Affirm Holdings, Inc. (AFRM - Free Report) recently announced an expansion of its partnership with Priceline. In this partnership, AFRM will become a pay-over-time provider to Priceline’s B2B partner brands through Priceline Partner Solutions. Businesses spanning cruise lines, hotels, car rentals, etc., will benefit from offering AFRM’s pay-over-time solutions to their customers.

This move is a time opportune one as AFRM GMV increased 35.7% year over year due to strength in travel and ticketing categories. This highlights the rising demand for transparent and flexible payment methods. Partner brands can now allow travelers to book trips and pay over time through their websites. This partnership with Priceline extends Affirm’s reach into a thriving market, driving potential increases in transaction volumes and revenues.

Affirm's seamless integration and transparent payment plans ensure customers enjoy an upfront view of total costs, free of hidden or late fees, for purchases over $50. Customers will go through a real-time approval process, after which they can choose from several customized personal plans.

For Priceline, this partnership enhances its product offering by addressing a key consumer need, while Affirm gains access to a vast network of travel brands. By embedding its buy now pay later services into these platforms, Affirm benefits from increased merchant adoption, higher average order values, and greater conversion rates.

Moreover, the partnership will aid AFRM in achieving its target of a minimum of $50 billion in GMV in fiscal 2025. This will help the company to expand the reach of its card and its merchant network internationally. Deepening adoption of AFRM’s cards through a rising number of partnerships should help the company improve its profit margins in the future.

AFRM’s Stock Price Performance

AFRM shares have rallied 111.9% in the past three months, outperforming the industry average of 14.9%.

Zacks Investment Research
Image Source: Zacks Investment Research

Affirm’s Zacks Rank & Other Key Picks

AFRM currently has a Zacks Rank #2 (Buy).

Investors can look at some other top-ranked stocks from the broader Business Services space, like Cantaloupe, Inc. (CTLP - Free Report) , Repay Holdings Corporation (RPAY - Free Report) and Envestnet, Inc. . Each stock presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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 15.9% year-over-year growth.

The consensus estimate for Repay Holdings’ current-year earnings indicates a 4.6% year-over-year increase. It beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 9.3%. The consensus estimate for RPAY’s current-year revenues is pegged at $316.9 million, implying 6.8% year-over-year growth.

The consensus estimate for Envestnet’s current-year earnings indicates a 22.2% year-over-year increase. It beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 6%. The consensus estimate for ENV’s current-year revenues is pegged at $1.4 billion, implying an 11.4% year-over-year growth.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Repay Holdings Corporation (RPAY) - free report >>

Affirm Holdings, Inc. (AFRM) - free report >>

Cantaloupe, Inc. (CTLP) - free report >>

Published in