Affirm to become available to US Apple Pay users
How did the announcement of the partnership between Apple and Affirm impact Affirm's stock prices?
The announcement of the partnership between Apple and Affirm had a positive impact on Affirm's stock prices. Shares of Affirm (AFRM) were trading higher on the day of the announcement, following the news that Affirm's buy now, pay later (BNPL) platform would be integrated into Apple Pay. This integration offers Affirm's service to Apple Pay users in the US later this year, allowing them to apply to pay over time when checking out online or in-app with Apple Pay2. The collaboration was seen as a significant development for Affirm, and the stock's upward movement indicates that investors viewed the partnership as a positive move for the company.
What specific services will Affirm provide to Apple Pay users as part of their new partnership?
As part of their new partnership, Affirm will provide buy now, pay later (BNPL) services to Apple Pay users in the US. This integration will allow users to apply for BNPL loans directly when checking out with Apple Pay for online and in-app purchases6. The feature is expected to be available later this year.
How does Affirm's underwriting technology contribute to its competitive advantage in the BNPL market?
Affirm's underwriting technology plays a significant role in its competitive advantage in the Buy Now, Pay Later (BNPL) market. The company's purpose-built technology infrastructure and unique approach to underwriting transactions have resulted in low default rates, as reported by Jefferies analysts4. This technology allows Affirm to analyze data effectively and make informed credit decisioning, which is crucial in the BNPL space.
Furthermore, Affirm's strong brand and sophisticated underwriting technology create a moat that competitors, including Apple, would find challenging to replicate. The company has underwritten many consumers as one of the first movers in the North American BNPL market, giving them a solid foundation in the industry1.
As a result, Affirm's underwriting process gives it an edge over its competitors, enabling the company to offer a more transparent and customer-friendly experience with no late or hidden fees. This competitive advantage has helped Affirm forge numerous partnerships and invest in other companies to enhance its core BNPL offering and drive profitability and growth3.