Shares in Affirm Holdings wavered Tuesday on a report that Walmart, a key customer of the consumer financing firm, is readying its own "buy now, pay later" services. Affirm stock had retreated 35% in 2024 before the latest news.
Walmart owns a majority stake in fintech startup One. According to a CNBC report, One has started offering BNPL services for "big ticket items" at Walmart stores.
On the stock market today, Affirm stock alternated between modest gains and losses as the Nasdaq composite climbed.
Walmart has been a BNPL partner of Affirm since 2019. In late 2023, Walmart and Affirm expanded ties. Affirm began providing its BNPL services at self checkout kiosks at more than 4,500 U.S. Walmart stores.
Affirm's BNPL services were earlier available at Walmart Supercenters. With BNPL options, consumers pay off purchases in monthly installments, either with low interest or none at all.
Affirm Stock: Move Into Banking Services
San Francisco-based Affirm gets revenue from transaction fees paid by retailers. In addition, Affirm garners revenue from interest income paid by consumers.
According to a Morgan Stanley report, longer-duration, interest-bearing loans now account for almost three quarters of Affirm's gross merchandise volume.
Affirm competes with Square-parent Block's BNPL arm, Afterpay, and many other players in the crowded market.
Both Affirm and Afterpay have been pushing into banking services.
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