Affirm: Apple’s Exit From Pay Later May Be A Growth Driver


  • AAPL’s exit from the BNPL scene provides massive opportunities for other fintech lenders, such as AFRM and other credit/ debit card providers.
  • AAPL users may be more likely to adopt AFRM’s BNPL platform ahead, with it potentially influencing “customer decisions on which cards to spend on, or where to set up credit.”
  • With AAPL’s users typically reporting higher incomes, we may see AFRM benefit from the reduced lending risks and delinquency rates, building upon the latter’s risk management thus far.
  • Therefore, while the AFRM management “does not expect this partnership to have a material impact in fiscal year 2025,” we believe that this guidance has been overly prudent.
  • With AFRM still reporting robust double digit growths and the consensus quietly upgrading their forward estimates, we believe that the stock remains a compelling Buy here.
On the table are banknotes, coins and a sign that says - buy now pay later. Financial and economic concept.

Maksim Labkouski

We previously covered Affirm (NASDAQ:AFRM) in April 2024, discussing why we had upgraded the stock to a Buy, thanks to the improved margin of safety from the stock’s pullback. This was on top of the fintech’s profitable operating margins and the management’s

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAPL, PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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