Affirm Holdings Inc (AFRM:US) experienced a significant surge of over 15% in its stock on Tuesday following the announcement of an expanded partnership with retail giant Walmart Inc (WMT:US). The collaboration aims to introduce self-checkout kiosks in over 4,500 Walmart stores across the United States.
This development comes on the heels of Affirm's remarkable performance in the stock market, with shares skyrocketing by over 400% this year. This marks a notable recovery for the company, which faced a substantial 90% drop in value in 2022. Tuesday's rally has propelled Affirm's stock beyond its $49 initial public offering price from 2021, a milestone not achieved since early last year.
Walmart's existing partnership with Affirm enables customers to make purchases online and in-store by pre-applying for credit and presenting a barcode to a checkout sales associate. The new expansion allows customers to utilize self-checkout kiosks by scanning the same barcode, streamlining the buying process.
“Recent Affirm research revealed that more than half of Americans (54%) are looking for retailers to offer a buy now, pay later option at checkout,” Affirm’s senior vice president of revenue Pat Suh said. “Moreover, we’ve found that 76% of consumers would either delay or not make a purchase without Affirm.”
It's worth noting that Affirm has established partnerships not only with Walmart but also with key competitors such as Amazon.com Inc (AMZN:US) and Shopify Inc (SHOP:US), solidifying its position in the market.
Affirm's strategic partnerships and innovations in the buy-now-pay-later sector have fueled its remarkable stock performance. The expanded collaboration with Walmart, a retail giant, further positions Affirm as a key player in meeting consumer demands for flexible payment options.
Notably, the company's success has also captured the attention of politicians. In a recent disclosure, Representative Daniel Goldman revealed purchasing Affirm stock in April, with transactions ranging between $1,000 and $15,000. Similarly, Representative Ro Khanna demonstrated confidence in the retail sector by acquiring Walmart stock in October, with transactions in the range of $50,000 to $100,000.