AFRM - Affirm is no longer the exclusive provider of BNPL loans at Walmart

2024-04-23 09:43:37 ET

Affirm Holdings Inc (NASDAQ: AFRM) is down 8.0% at writing after One – a Walmart-backed financial technology startup joined the BNPL race.

Why is it a big deal for Affirm stock?

One will reportedly enable customers to opt for its buy now, pay later loan to purchase big-ticket items at more than 4,600 locations of Walmart across the United States.

The announcement is significant for as it was so far the exclusive provider of BNPL services at the retail behemoth. Walmart, in fact, added Affirm as a mode of payment at its self-checkout kiosks in December.

The Nasdaq-listed fintech is scheduled to report its financial results for the first quarter in early May. Consensus is for it to lose 70 cents a share versus 69 cents per share a year ago.

Affirm stock is now down a whopping 40% versus its year-to-date high.

How much of online spending does BNPL drives?

One is committed to becoming a financial superapp for spending, saving, and borrowing money in the long run. According to Jason Mikula – a former Goldman Sachs consultant:

I have to imagine the goal is to have it all [credit card, BNPL, or remittances] unified in an app under a single brand, delivered online and through Walmart’s physical footprint.

Buy now, pay later made up $19.2 billion of total online spending in the first three months of 2024 – up 12% on a year-over-year basis, as per Adobe Analytics.

Note that the Walmart-backed fintech, however, is not publicly listed like Affirm at writing.

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