Fed’s Powell opens door to potential rate cuts at Jackson Hole
SAN FRANCISCO - Affirm Holdings , Inc. (NASDAQ: NASDAQ:AFRM), a fintech company with a market capitalization of $24.38 billion, and Shopify (NYSE:SHOP) have announced an expanded partnership, confirming Affirm as the exclusive provider of Shop Pay Installments in the United States and extending this exclusivity to Canada. The collaboration is set to grow further, with plans to launch in the United Kingdom (TADAWUL:4280). According to InvestingPro data, Affirm has demonstrated impressive growth with revenue increasing 46.27% over the last twelve months.
This multi-year renewal follows the success of Affirm’s pay-over-time solutions in the U.S., where millions of consumers have utilized Shop Pay Installments since its inception in 2021. The service, which offers customized payment plans with rates as low as 0% APR and no hidden fees, has been rapidly adopted across Shopify’s merchant network.
Shopify COO Kaz Nejatian expressed confidence in the partnership, citing Affirm’s technology and commitment to transparency as key reasons for its international expansion. Canadian Shopify merchants are expected to offer the installment payment option in the coming months, providing their customers with biweekly and monthly payment plans.
Affirm’s Founder and CEO, Max Levchin, highlighted the growth potential that Shop Pay Installments bring to merchants globally. The company’s mission of building a payment network based on trust and transparency aims to empower consumers to spend responsibly while supporting business growth.
Shopify, known for its commerce platform and services, supports millions of businesses in over 175 countries and is trusted by a range of notable brands. The partnership with Affirm aims to enhance the shopping experience for consumers both online and in-store.
Payment options through Affirm are subject to eligibility and provided by lending partners listed on affirm.com/lenders. In Canada, Affirm Canada Holdings Ltd will offer rates from 0 to 31.99% APR, subject to provincial regulatory limitations.
The expansion of Affirm’s services to Shopify merchants in Canada and the planned entry into the UK market mark a significant step in the company’s international growth strategy. This move is based on a press release statement and involves certain forward-looking statements that are subject to risks, uncertainties, and other factors that could affect actual results.
In other recent news, Affirm Holdings Inc. reported a strong fiscal quarter, surpassing expectations and prompting RBC Capital Markets to raise its price target for the company from $67 to $81, maintaining a Sector Perform rating. Similarly, Mizuho (NYSE:MFG) Securities increased its price target to $84 from $78, citing Affirm’s impressive second-quarter results, including a Revenue Less Transaction (JO:TCPJ) Costs of $419 million, which exceeded guidance. JMP Securities also adjusted its outlook, raising the price target to $85, highlighting Affirm’s potential in the Buy Now, Pay Later market and its faster-than-expected progress toward GAAP profitability.
Affirm has announced an expanded global partnership with Shopify, solidifying its role as the exclusive provider of Shop Pay Installments in the U.S. and Canada, with plans to enter the UK market. This strategic expansion is expected to benefit both companies, with Affirm poised to capitalize on the increasing demand for flexible payment solutions. Additionally, Affirm has partnered with FIS to integrate pay-over-time solutions into FIS’s debit card offerings, enhancing customer financial management options.
These developments reflect Affirm’s ongoing efforts to expand its market presence and improve its financial performance, as evidenced by the positive adjustments in financial estimates from RBC Capital for fiscal years 2025 and 2026. Affirm’s partnerships with major players like Shopify and FIS, along with its focus on international expansion, underline its strategic initiatives to drive growth and adoption of its payment services globally.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.