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JACKSONVILLE, Fla. - FIS (NYSE: FIS), a prominent financial technology provider, has announced a strategic partnership with payment network Affirm (NASDAQ: AFRM) to integrate a pay-over-time solution into FIS’s debit card offerings for bank clients. Affirm, which has seen its stock surge over 30% in the past week and maintains a strong current ratio of 12.29, continues to demonstrate robust growth with revenue increasing 46.27% over the last twelve months. According to InvestingPro analysis, the company currently appears overvalued relative to its Fair Value. This new program, which will be available through banks’ digital banking and mobile app platforms, aims to enhance customer financial management by allowing them to manage their finances in one place. InvestingPro subscribers can access 12 additional exclusive tips about Affirm’s performance and potential, along with comprehensive financial analysis in the Pro Research Report, which provides deep-dive insights into the company’s operational efficiency and market position.
The collaboration comes as financial institutions seek innovative ways to cater to consumer demands for flexible purchasing options. By incorporating Affirm’s payment solutions into their products, FIS’s banking clients can offer their customers biweekly and monthly payment plans, as well as access to merchant-funded financing offers, such as 0% APRs and higher credit limits from Affirm’s network of over 335,000 merchant partners.
Jim Johnson, co-president of Banking Solutions at FIS, emphasized the importance of consumer conversion and retention in the digital economy. He noted that consumers are looking for user-friendly experiences that provide flexibility and control over their money. Affirm’s technology and payment options are expected to help FIS’s clients offer more competitive services.
When the program launches, eligible customers of participating FIS debit processing banks will have the opportunity to access various payment plans through their existing debit card products. Affirm will handle the underwriting and servicing to ensure a smooth experience for FIS clients and their customers. With a market capitalization of $24.7 billion and significant revenue growth momentum, Affirm continues to expand its market presence despite not yet achieving profitability, as revealed by detailed financial metrics available on InvestingPro.
Wayne Pommen, chief revenue officer of Affirm, expressed the company’s enthusiasm for bringing Affirm’s underwriting technology and payment solutions to third-party issuers through the partnership with FIS. He highlighted the program’s potential to expand consumer access to flexible payment options and connect them with a vast merchant network.
The initiative is part of FIS’s ongoing mission to innovate financial technology across all stages of financial transactions. Banking clients interested in the program can contact BNPL.Support@fisglobal.com for more information.
This news is based on a press release statement.
In other recent news, Affirm Holdings (NASDAQ:AFRM) Inc. has seen a series of positive revisions from notable financial firms. RBC Capital Markets raised Affirm’s price target from $67 to $81, citing strong fiscal quarter performance and an increased forecast for fiscal year 2025. Similarly, Mizuho (NYSE:MFG) Securities increased Affirm’s price target from $78 to $84 following the company’s impressive second-quarter results. JMP Securities also raised Affirm’s stock price target to $85, highlighting the company’s potential to disrupt the traditional credit card sector.
In a significant upgrade, Compass Point analysts moved Affirm’s stock rating from Sell to Neutral and raised the price target to $61 from $20, reflecting a more optimistic outlook on the company’s growth and profitability prospects. These recent developments underscore the financial industry’s increased confidence in Affirm’s performance and future growth trajectory.
Affirm and Liberty Mutual Investments have also expanded their existing forward flow loan purchase program, with the potential outstanding amount reaching up to $750 million, further solidifying their partnership. These updates provide a snapshot of Affirm’s recent advancements, with a focus on earnings, revenue, analyst revisions, and strategic partnerships.
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