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Affirm (AFRM) to Offer BNPL Solutions for VersaClimber Shoppers

Affirm Holdings, Inc. AFRM recently announced that the company struck a partnership with global fitness brand VersaClimber to provide consumers with its Buy Now, Pay Later (“BNPL”) services. Eligible customers can now buy exercise machines and equipment from VersaClimber and pay for the same over time.

The total price of any purchase of more than $50 can be split by the consumers into monthly installments. As low as 0% annual percentage rate can be availed by the shoppers for their monthly payments. This move adds VersaClimber to Affirm’s network of more than 240,000 retail partners.

The collaboration is expected to boost VersaClimber’s sales, average order value and repurchase rates. As Affirm will not charge late and hidden fees, it is expected to witness significant demand growth. AFRM already has a strong foothold in the U.S. market and the latest partnership is expected to further boost its presence in the North America market. The deal is also likely to increase its merchandise volume.

With spending patterns showing resiliency, despite the market volatilities, companies like AFRM are expected to gain heavily. This can lead to higher transaction volumes for payments companies. With growing dependence on BNPL solutions and similar services due to high inflation, companies like this are expected to continue benefiting from higher volumes.

Price Performance

Over the year-to-date period, shares of Affirm have gained 3.3% compared with the 8.6% rise of the industry it belongs to.

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Zacks Investment Research

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Zacks Rank & Key Picks

Affirm currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are International Money Express, Inc. IMXI, Nayax Ltd. NYAX and Remitly Global, Inc. RELY. While International Money Express sports a Zacks Rank #1 (Strong Buy), Nayax and Remitly Global carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Miami, International Money Express offers money remittance services. The Zacks Consensus Estimate for IMXI’s 2023 earnings indicates a 24.3% year-over-year increase.

Herzliya, Israel-based Nayax operates a payment platform globally. The Zacks Consensus Estimate for NYAX’s 2023 earnings indicates a 54.4% year-over-year improvement.

Based in Seattle, WA, Remitly Global is a digital financial services provider. The Zacks Consensus Estimate for RELY’s 2023 earnings suggests a 5.9% improvement from year-ago levels.

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